Wednesday, October 29, 2008

RIMM: Buy, Sell ... Calls!?!?!

It's been a while since I've touched calls, but with the VIX dropping like a rock earlier this morning I couldn't resist. I picked up some RIMM calls and tossed them back as I was watching the Dow and VIX. My original target was to ride the momentum to $2.20, however the DJI was loosing intraday gains and VIX was gaining momentum. As I am writing this right now, those calls are at $2.17 right now, so you can argue I sold too soon but given that RIMM has no catalyst itself (today) to fight off 2 800 pound macro indicators, not to mention we're waiting for an announcement from the Federal Reserve (~ 1600 pounds) ... all I have to say is beggars can't be choosers, I'll take my 5% and live to play another day.

Buy: 10 calls of RIMM Nov 55 at $2.01
Sell to Close: 10 calls of RIMM Nov 55 at $2.11

Gain: $100

--Kevin

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