Saturday, February 2, 2008

Standard Pacific

Standard Pacific (SPF) trading at $4.85; Feb 2008 $5 call (SPFBA) trading at $0.60. Could be an easy 17% (buy-write for 4.25; sell for 5) for three weeks of work.


Put Yahoo! (YHOO) on the watch. Still below the $31 Microsoft (MSFT) offer and likely that MSFT will bump up the offer price. Current price reflects Wall St.'s skepticism about the deal. So some risk involved.