EMC opened this morning at $20.94. So far today the stock has hit a low of $20.75 and a high of $21.58. As of 12:25, EMC is trading at $21.06 up 0.76 (3.7%). The chart for EMC looks bullish and S&P gives EMC a positive 5 STARS (out of 5) strong buy ranking.
For a bullish hedged play on this stock, I would consider a November bull-put credit spread below the $19 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 7.1% return in five weeks as long as EMC is above $19 at November expiration. EMC would have to fall by more than 9% before we would start to lose money. Learn more about this type of trade here.
EMC has not been below $19 since the first day of September and has shown support around $19.40 recently.
Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent owns or controls bullish hedged positions in both EMC and ORCL.