Palm hit a new 52 wk high today over $10. All this hype is based on people betting the new smart phone (pre) will be a success. I think people who can buy a smartphone in this economy will buy from apple or RIM. My thesis is that if the Pre fails to sell well and blowout expectations than PALM will take a huge hit. However, if it is a success that the shorts will get squeezed (I think over 40% are short) My strategy is to sell in-the-money naked calls 7.5 strike price. (Aug expiration) I know all the risks involved and will exit the trade if it goes against me. What does everything else think about Palm's prospects? Do you think everything rests on Pre's success or not? My only worry is that Palm gets taken over and I get killed on the options I wrote.