Dykstra: It's Time to Hit the Sirf Options

Sirf's customer list is quite impressive, including General Motors(GM Quote), LG Electronics, Matsushita, Microsoft(MSFT Quote), Motorola(MOT Quote), SprintNextel(S Quote), Nokia(NOK Quote), T-Mobile and others all relying on Sirf for GPS components. Today, Sirf holds dozens of patents from its PC chip approach to GPS.

Despite not meeting analysts' expectations this quarter, there are significant positives that can be deduced from Sirf's recent news, beginning with the fact that the company reiterated its revenue guidance for fiscal year 2007.

This means Sirf intends to make up for the missed first-quarter revenue in subsequent quarters. Also, the company's lowered earnings make it a good bargain.

To take advantage of this opportunity, I will place a limit order to buy 10 contracts of the December $15 (QIRLC) DITM calls at $8.30, or better.

Game of Life

As we enter June, baseball continues to wait expectantly as Barry Bonds remains nine home runs shy of Hank Aaron's career home run record of 755. A-Rod leads the majors with 20 homers, with Prince Fielder is close behind with 19.

In the divisional races, the Mets lead the Braves by 3½ games in the NL East, while the Brewers lead the Cardinals by 6½ games in the NL Central. The NL West finds the Padres, Dodgers, and Diamondbacks in a virtual dead heat for first place. In the American League, the Angels enjoy a 5½-game lead over the Mariners in the AL West, with the Indians have a slim 2½-game lead over the Tigers in the AL Central. In the AL East, the Red Sox continue with a double-digit lead (10½ games) over the Blue Jays, with the Yankees 12½ games behind.