Garmin Falls on SiRF Forecast

3/25 - "Garmin Ltd. (NASDAQ: GRMN) stock is falling after GPS chipmaker SiRF Technology Holdings (NASADQ: SIRF) cut its first-quarter revenue forecast due to lower-than-expected demand in a weakened economic environment."

"For a bearish hedged play on this stock, I would consider a May bear-call credit spread above the $75 range. A bear-call credit spread is an options position that combines the purchase and sale of call 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 an 8.7% return in two months as long as GRMN is below $75 at May expiration. Garmin would have to rise by more than 24% before we would start to lose money."