Hologic (HOLX) Naked Puts

When I’m trying to find a new stock pick to invest in one of my usual stops is Jim Cramer’s Mad Money.  I got a video iPod for my birthday last week (I’m 36 now) and now have the opportunity to download Cramer’s Lightening Round podcasts and watch and listen to them on my walk from the parking desk to my luxurious cube.  This has quickly become my morning routine.  I listen to the podcast and then dive in for further research on any stock picks I think sound interesting.

Last night’s show was a little slim for good ideas that meet my criteria.  Of the four I checked, UA looks like it might drop some first, but I have such a hard time with the chart that I could be completely wrong about it.  BAC seems to be falling too and I’ve entered an email alert for when it comes back over 50.  GWW could be good, but the put premiums aren’t worth messing with it for now.

That brings me to Hologic, Inc (HOLX).  HOLX is touching the ceiling of its trend line that has been holding it back the past few weeks.  I put a limit in to sell two August 55 puts at $2.00 if it drops some.  That’s ~$0.50 above the current ask.  HOLX’s earnings growth is showing acceleration and is trading in the low range of its historical p/e average.  With a trailing p/e of 62.90 and a forward p/e of 29.00 HOLX should have good room to climb further if they come close to hitting earnings predictions. If my HOLX order doesn’t hit in the next couple of days, I’ll lower my limit.

Also, as a follow-up on my AT&T (T) trade from yesterday – I’m up $100 on paper not counting commissions and think it’ll rise some more.  T is trading just under 40.00.  Anything over 40 will move my calls ITM.  In addition, HAIN is up a little more from where I bought it in my IRA too.  I think it still  has a lot of room to come back.

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