Technology and Treasuries

Yesterday was not a good day. Not for the markets and not for me. My woes had to do with food poisoning (rather than what I thought was the flu). But just as this may be a short-term trading opportunity for the market, yesterday helped me with a quick weight-loss program. Still, I'd probably recommend using Weight Watchers (WTW) over yesterday's approach.

As for stocks, both Micron Technology (MU) and Motoricity (MOTR) look putrid. Following on my put-selling thesis from Monday, I think there are plays to consider on both. For a trader who is simply looking to get into MU at a much lower price, yet still make a decent return on cash if the stock stays flat, then the October 3 puts were an attractive sell this morning. Another more conservative approach would be to sell three October 3 puts and buy one October 4 put when they are at no cost. With the stock jumping around today, I'm not sure how long it will be like this. My preference is to buy the November 4 put and sell three November 3 puts in a 5x15 ratio for about $25 to $35 net (taking commissions into account). I still take in a small net credit, but now my break-even point is pushed slightly below $2.50. Also, I stand to make a nice profit if MU heads below $4, but stays above $3 come November expiration....294 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.