By Sell Puts
This morning we have a few pre market movers, CIT is down on some news its basically going to do a pre negotiated BK. AIG finalizing deal to sell its life insurance arm to Primus. JNJ down pre market after meeting expectations. STAR halted on news of CSCO takeover ($2.9 bil). Meredith Whitney and her "advisory firm" have downgraded GS from buy to neutral.
What bothers me about the STAR deal is why could they not waited 30 min till the market was open, give us some fodder come on.. Big deals like this make for great indraday trading, all this pre market stuff is for the birds. I personally feel all these companies are afraid of what will happen if they announce during market hours. I know what will happen, they will sky rocket. Maybe they do not want to have options markets persuade the price? who knows.
This am i am looking to play JNJ on a possibly gap fade up, and i am bidding some CIT puts. The CIT trade could be over but ill watch the price action as they options open up so i can figure out the trend.
