Tuesday, October 30, 2007

VMware

VMWare, would it go above $150?

VMWare is a star. I knew this company through my work. My company is using VMWare products so I got exposed to this name. But, I had no clues about their business until this summer. This summer VMWare became super hot. Why? IPO. After dot.com bubble, IPO becomes hard. Every startup wants to do IPO but no big firms want to underwrite small firms' IPOs. The NASDAQ market had been quiet for ages. Then, we had Google IPO. You must remember how crazy Google's stock price has gone. Now, the question is... would VMWare be another Google? Would VMWare go above $150? Today its price is $120.

Although VMWare looks promising, for me, I am not comfortable to get it with this price. So, I decided to get some options instead. If you have little money to invest and do not mind the risk, you may want to try the same thing. Get an option with a month or two expiration date. Buying and selling options properly can help you hedge and manage your portfolio more efficiently.