Imax (IMAX, $4.95, up $0.42) is up another 10% today as we head into the final hour of trading. The stock has been in a steady uptrend since an update from December 3. At the time, I had listed several Movie/ Entertainment stocks to keep an eye on but liked Imax the most. Here were my thoughts:

“The one player I do like in the sector is Imax (IMAX, $2.73, down $0.08) and I have mentioned this stock before at much higher levels. I do not trust the stock enough to by any longer-term options but Imax could be a force in the movie industry down the road.”

There is no significant news that is pushing the stock higher although the company is giving an update at the Citi Global Entertainment, Media & Telecommunications Conference in Phoenix later this afternoon. If you got in below $3, set stops at $4-$4.50.

Elsewhere, Apple (AAPL, $93.68, down $0.89) is retreating after cutting prices on its iTunes. The stock had hit a high of $97 before the news was announced and quickly sold off. The January 95 calls (QAAAS, $3.05, down $0.85) hit a high of $5.10. Here is a classic case of buy the rumor, sell the news and I had mentioned that positions needed to be closed quickly.

The Caterpillar (CAT, $46.40, up $0.32) trade was officially closed this morning as the January 40 calls (CXJAN, $6.40, up $0.30) hit our stop of $6.05.

Potash (POT, $84.89, up $2.27) traded to a low of $80.69 this morning but it wasn’t enough to enter the February 90 calls (PYPBR, $6.80, up $0.60). We were trying to get in this position at $5 but the options only traded as low as $5.31.

Rick Rouse