Opinion on  Palm Inc (PALM)     Sector: Technology  >  Industry: Computer Hardware
Big Dividend Coming

I believe that the put options on palm for some time next year are worth the risk, because they are expected to pay a big dividend ($9) some time in the near future.  Put options give you all the benefits of the downward movement of the stock price due to the dividend, without having to cover the dividend as someone who is short palm would have to.  I would have 2 put positions on palm for for sometime within the next 12 mths.  One position would be super risky and would be the $10 PUTs, and the other position would be somewhat more conservative and would be the $15 PUTs.  I should warn you that this big dividend payout is subject to shareholder approval so keep your ears open for any news regarding the deal with EP.