Instant Insights with the Fast Money traders
If you play this name, it's important to understand there’s huge short interest in Palm, adds Steve Grasso of Stuart Frankel. In fact shorts are 44% of the shares outstanding. As far as I’m concerned the stock is nothing more than a trading vehicle and I wouldn’t stay in it for more than a day. Don't think if the stock rallies, you're safe.
If you’re even thinking about a long position in Palm I’d only play it with options, counsels Brian Stutland. Your upside is capped but so is your downside.
As an investor I’d move on, there are better ways to play this space, says Patty Edwards of Storehouse.
MARKET RALLY STALLS ON QUADRUPLE WITCHING
Caution prevailed in the stock market on Friday as health care reform landed center stage once again; with a week-end vote likely Dems said they finally have enough votes to get reform through he House.
Also, investors were nervous about potential swings in the market triggered by Friday’s quadruple witching; On Friday stock options, index futures, index options and single stock options futures all expire at once.
What’s the trade?
On quadruple witching I often find stocks that are trading near a big strike price tend to gravitate there, explains Brian Stutland. Then they get stuck there. As a result, I think the market gravitates toward 1150.
I think short term the S&P could pull back to 1140 due to health care reform and other potential headwinds, but even if we take a breather stocks are probably going higher in the long-term, speculates Patty Edwards.
I’m a buyer of the market above 1150 but below that I’d go neutral, says Steve Grasso.
CALL THE CLOSE
Steve Grasso: I’m a buyer of the market above 1150 but below that I’d go neutral
Patty Edwards: I’m staying out of the market.
Brian Stutland: I think the market gravitates toward 1150.
Got something to to say? Send us an e-mail at email@example.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to firstname.lastname@example.org.
Trader disclosure: On March 19, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Grasso Owns (AAPL); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE) ; Finerman's Firm Is Short (SPY), (IYR), (MDY), (IJR); Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC), (BAC) Preferred ; Finerman's Firm And Finerman Own (JPM); Finerman's Firm Owns (QCOM); Finerman's Firm OWns (RIG); Najarian Owns (AA) Calls; Najarian Owns (BAC) Call Spread; Najarian Owns (C) Calls; Najarian Owns (INTC) Calls; Najarian Owns (TEVA); Najarian Owns (UNH) Call Spread; Terranova Owns (QCOM), (TER); Terranova Is Short (CAL), (UAUA), (AMR), (GS)
GE Is The Parent Company Of CNBC
For Brian Kelly
Kanundrum Capital Is Short (GBPUSD)
Kanundrum Capital Is Short (EURUSD)
Kanundrum Capital Is Short (RSX)
Kanundrum Capital Owns (GE)
Kanundrum Capital Owns US Dollar
Kanundrum Capital is Short (FCX)
Kanundrum Capital (AA)
Kanundrum Capital Owns (QCOM)
For Brian Stutland
Stutland Equities is Market Maker in (VIX)
Stutland Equities is Market Maker in (SPX)
Stutland is Short (VIX)
Stutland is Short (GLD)
For Steve Grasso
Stuart Frankel & Co. Inc. And Its Partners Are Short (QQQQ)
CNBC.com with wires