Stock Pick 2-5-13 – Riverbed – RVBD

My stock pick for 2-5-13 is Riverbed – RVBD and the current price as of Monday’s close is $19.76.

This trade is an earnings play on the upside. The last two dates that Riverbed reported their earnings, they beat expectations by a wide margin. Subsequently, the stock jumped $3.82 from the previous closing price in July and $2 after the close back in October.

The market is currently leaning toward a gain of around $2.40 by looking at the expected price according to the straddle options being traded. This would net you a gain of 10% if the stock trades according to the last few earnings reports.

As always, be cautious when trading into earnings, like we saw with VMWare. However, this may be a good play as the last two times they reported showed. Earnings happen after the close of the market on 2-7-13 so look to purchase between now and the close on the 7th.