NEW YORK (TheStreet) -- Facebook (FB - Get Report), Research In Motion (RIMM), and Exxon Mobil (XOM - Get Report) closed at lows of the year Monday. They represent three different industries, devalued for different reasons, and three very different likely outcomes; however, they all share one important characteristic: You can make you money with them if you time your investment correctly.RIM closed in single digits Monday for the first time since December 2003. For a company that remains cash-flow positive (with a possible loss in the current operating quarter) and profits of $2.22 a share in fiscal 2012, it's clear the BlackBerry is being thrown out with the bathwater.
The smart money is not betting against Microsoft, the short interest is only 1.2%. I will look to enter a position near $27.50 using options to hedge and mitigate my risk exposure.
Smart money has lined up to short Zynga faster than at a $1 kissing booth hosted by Emmanuelle Chriqui. Over 35% of Zynga shares are shorted as of May 15, the latest reporting date. At some point, shorts are going to want to cover. As the price moves lower the potential reward falls while the level of risk increases. Have Zynga's shares reached the tipping point yet for shorts to cover? Watch shares of Facebook to lead the way. With Facebook trading volume declining almost every day, the weak hands appear to have largely folded already. A Facebook closing above the IPO price is the point I become interested in Zynga. Like every big news story, the Facebook mess will soon run its course and value buyers will step up to gain exposure. Even with the drop of $11 from the IPO price, Facebook is still priced relatively rich at $27. If Facebook breaks below $26 I will become interested in writing July $23 and $20 put options ( Don't miss my first Facebook article published May 18).