Many big names will be weighing on the minds of investors Wednesday. The major averages finished higher Tuesday, helped in part by Johnson & Johnson's (JNJ) - Get Report earnings. The firm announced first-quarter profit of $3.6 billion, or $1.25 a share. That was 6 cents above analysts' expectations.

After the closing bell,

Intel

(INTC) - Get Report

surprised Wall Street when it reported better-than-expected sales figures for the first quarter and gave a strong sales outlook for the second quarter. The company's earnings fell from the year-ago period, but sales

exceeded expectations

.

Other news likely to be on the minds of investors today includes earnings announcements from

Coca-Cola

(KO) - Get Report

,

JPMorgan

(JPM) - Get Report

and

eBay

(EBAY) - Get Report

.

JPMorgan's profits fell, but the bank, which recently struck a deal to acquire

Bear Stearns

( BSC), still beat the Street's expectations. Coca-Cola easily beat expectations when it said its first-quarter earnings leaped 19% on strong growth in sales.

eBay reports earnings after the closing bell, so many will be watching the online auctioneer. The company has undergone a number of changes since last quarter, including getting a new CEO and revamping its fee structure. Analysts are calling for earnings of 39 cents a share on $2.07 billion in revenue in the first quarter.

For many, it will be a very positive day. But, I am looking for beat-down companies that are good and I have found one in

Sigma Designs

(SIGM)

, which I had traded earlier this year.

Sigma sells silicon-based digital media processors that are used in video technology for media players and high-definition TVs. The company is also a player in the blu-ray space, which is primed to gain momentum later this year. Blu-ray technology is often used in DVD recorders and produces a better picture quality compared to traditional DVDs.

Shares of Sigma got pummeled again on Tuesday following a research note from Robert W. Baird & Co. analyst Tristan Gerra that indicated Sigma lost out on a big contract.

Specifically, Gerra said competitor

Broadcom

was awarded a contract to provide

Motorola

( MOT) with chips for Internet television set-top boxes, which are used to bridge the gap between downloading video on the Internet and viewing it on TV.

Sigma has 26.54 million shares outstanding, with approximately 25.79 million shares in the float. Amazingly, out of the 25.79 million shares in the float, this little firecracker of a stock has approximately 10.75 million shares short at this time. That is why I am going all the way out until October with today's Deep in-the-Money call.

I will place a limit order to buy 10 October $12.50 calls (MQNJZ) for $4.40, or better. As a reminder, I set my exit price $1 above the entry price to secure a $1000 profit on each position.

Always Remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra was long SIGM and GE.

Nicknamed 'Nails' for his tough style of play, Lenny is a former Major League Baseball player for the 1986 World Champions, New York Mets and the 1993 National League Champions, Philadelphia Phillies. A three time All-Star as a ballplayer, Lenny now serves as president for several privately held businesses in Southern California. He is the founder of The Players Club; it has been his desire to give back to the sport that gave him early successes in life by teaching athletes how to invest and protect their incomes. He currently manages his own portfolio and writes an investment strategy column for TheStreet.com, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."