Trades for the week of May 21 to May 25

   Hi all, I'm back, with this week's trades. Facebook's IPO, yesterday 18 May 2012, ended flat. That 100B IPO was one of the most anticipated IPOs on Wall Street since some big stocks like Google went public. FB was disappointing, and it lead to some social media stocks like Zynga to fall quite a lot-- about a dollar to around $7. I wouldn't touch FB at all right now.
   Although this week was bad for the major indexes(Dow dropping >3%, S&P dropping >4%), it was relatively good for my portfolio. AutoDesk (ADSK) options performed well, with a 76% increase in value. Ralph Lauren (RL) had to rolled out to new strikes. I gained 30% in the process. Tiffany and HP options are performing well too. One more trade I did, options for American Eagles (AEO), is still in the red. Now, without further ado, the trades for this week.

Trade 1:Straddle
 Dell Inc. (DELL) reports earnings on Tuesday,May 22
At a price of around $14.70, here is what I plan to do:
 Buy A June 2012 ATM Call contract ($15)
Buy a June 2012 ATM Put contract ($15)
 It's IV is at a relatively low 35-40% range, worth a trade

 Trade 2:Straddle 
America's Car Mart Inc (CRMT) reports earnings on Friday,May 25
At a price of around $41.70, here is what I plan to do:
Buy a June 2012 ITM Call Contract ($40)
Buy a June 2012 OTM Put Contract ($40)
 It's next option is at $45, but preferably I would do a $41 and $42 trade.
 It's IV one around 30% and the other around 50%, good for a trade now

 Trade 3:Straddle
 Joy Global (JOY) reports earnings next thursday, May 31
At a price of around $60.70, here is what I plan to do:
Buy a June 2012 ATM Call Contract ($60)
 Buy a June 2012 ATM Put Contract ($60)
 It's IV, in the 50-60% zone, is good for a trade. This one may be rolled to a new strike price. I would do this only late in the week or at the earliest, Wednesday this week.

Stock Purchase: AT & T (T) 
AT & T (T), the biggest telecom company in USA, is holding up well in recent days, even as the market is performing badly. It even hit a new 52-week high recently. It is the biggesy provider of high speed wireless and internet connection, which I feel is very important these days in our lives. The release of new tablets and smartphones will only improve AT&T's business It's recent breakout because of it's fabulous earnings on Apr 24 only showed the stability of the company in these turbulent times. It's dividend, At 5.23%, is the highest within the Dow Jones Industrial Average (^DJI). Even if AT&T is involved in a pullback soon, I'm sure this one will thrive in the years to come. I am long DIS, KMB and T. 
   Utility stocks like Duke Energy (DUK), Dominion (D) and Southern Company (SO) are holding up well too. Although I am not buying these shares personally, they may be worth a look too.
   Stocks that hold up in bad times are always the ones that are the most stable and are the ones one should put his money in. I know I have been picking mega-cap stocks these weeks. I'll try to recommend a stock with a smaller market capitalization next week. But, in these times, stable stocks are the way to go.