OPTIONS
Jon Najarian of OptionMonster is expecting a big move after earnings.
“Options are pricing in about a 4% move,” he explains. But I think it’ll move more than that.”
Fundamentally, Microsoft is well positioned ahead of an expected PC upgrade cycle, he says, and should put up strong numbers.
Combine the options and the fundamentals and “I’m buying this one ahead of earnings,” he concludes.
What's the takeaway?
I'm not a big fan of Microsoft but with the refresh cycle coming I think the stock will do well, says Brian Kelly.
I think it's put up or shut up time for Microsoft, says Guy Adami. If they don't crush right now when will they?
My clients sell Microsoft into any rally, so yes it’s due for a pop, but every time it rallies it’s met with an onslaught of selling, adds Steve Grasso.
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Trader disclosure: On July 21, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BAC), (FCX), (GOOG), (MOS), (SBUX); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova owns (EMC), (CREE), (CRCM), (LRCX), (COP), (AXP), (BMO), (CSX), (PEP), (CVS), (GS), (PCP), (C), (APA), (FCX), (JOYG), (MMM), (MOS), (GLD), (UAUA), (WYNN), (GOOG), (BBY), (SU), (KOL); Pete Najarian owns (C) calls; Pete Najarian owns (CRUS) calls; Pete Najarian owns (ISRG) call spreads; Pete Najarian owns (DD) call spreads; Pete Najarian owns (GNW) call spreads; Pete Najarian owns (V) call spreads; Pete Najarian owns (CNI) call spreads; Pete Najarian owns (TEVA) call spreads; Pete Najarian owns (PFE) call spreads; Kelly owns (BP) puts; Kelly is short (GS)
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