all in all you are risking all the downside in order to cash in 50 cents per share in premium, not a good deal i would say.

and the reason to play emc just because of the vmw story is a bid risky, i guess you listen too much to cramer since such calculations are that easy, bear in mind that vmw will go down as soon emc starts to sell their stake.

Trader… There have now been options listed for VMW which were not initally available. You are definitely correct in pointing that out. There are September, October and January options available for EMC. Hopefully you understand that investors can choose to trade any of these options and do not have to wait for September expiry to end before trading October options.

Standard industry practice is to annualize an investment with a fixed time horizion. 3 month CD’s are typically quoted in annualized terms. I in no way expect a “guaranteed” return of 32% either for the 36 days left till October expiration or through a full year of putting on similar positions. I am simply stating that IF EMC is bought at this price and holds up above the strike price through October expiration, the annualized return would be 32%. Hope that clarifies the situation.

The sheet market has suffered from lackluster demand in the automotive and residential construction markets, including appliances and HVAC, Charlotte-based Nucor said Wednesday.

“On the supply side, while the latest data suggests a strong slowing of imports in August, stubbornly high imports through the first seven months, particularly from China, continue to impact both pricing in the marketplace and customer inventories,” the company said. “While both imports and inventories are down significantly from their peaks, they did not fall far enough during the end of the second quarter and through the midpoint of the third quarter to support improving pricing opportunities during the third quarter.”