Whiplash

GRMN is reminding me of that old Monty Python movie where the English actor keeps getting his limbs chopped off with him screaming "I'm not dead...yet!" Well that is where GRMN is right about now. A run to $100 with the stock closing near its highs yesterday to be followed today by a 10% plunge.

TomTom caused the GRMN plunge today by upping their offer to buy Tele Atlas for $4.2 billion (30 euros a share). They also effectively made deals to buy 28% of the stock from other investors, thereby putting a lot of pressure on Garmin's chances of success (I believe that just over 33% of the stock is enough to kill a GRMN merger).

Instead of celebrating in the streets because GRMN won't have to hock everything to swallow Tele Atlas, investors have sold off again today hating the uncertainty. It got so bad today that I bought GRMN puts (Nov90's) to put a collar on my long position for a few hours to ride the wave down.

I have since sold those puts for a 25% profit, but there in no real guarantee that the bottom is in just below $90. If GRMN walks away (which I think they should) and tells the Street that everything will work out (and here is why....), then this stock will take off again. I am willing to bet that it will.

On another note, ROCM got an upgrade today with a new price target of $19. A nice 12% bump in a horrible tape. It allowed me to take a little off the table and buy some more AAPL calls - a stock that doesn't want to go down.