IBM

IBM has been in a tight range for over half a year now, bringing the implied volatility on most of its options below 20%. It may be ready to pop higher any day now. http://chart.ly/qpmbne I'm not bullish on the market overall, but IBM's fundamentals are solid and can make a nice low risk trade on the long side of your long/short book, should the stock continue wafting near the highs before breaking.

If/when IBM pops above 132.50 and 133, and especially if the stock can't break the recent lows around 128.50, I'll probably be looking to pick up Jan 2011 calls at ~140 strike, with IVs around 20%. Great risk/reward and great cheap time premium on calls that can be obtained possibly right when the stock starts a new upleg.