Thursday, October 23, 2008

RIMM: Buy, Sell Options

VIX yielded some nice long sell indicators, followed by brief buy blips, which fits into my new model nicely. Picked up some RIMM options, and tossed them back in after I felt the VIX started to end those long sell sessions. These puts will undoubtely continue to grow, but not interested in sticking around too long these days.

Buy to Open: 10 puts RIMM Nov 40 at $2.59
Sell to Close: 10 puts RIMM Nov 40 at $3.00

Gain: $410

--Kevin

2 Comments:

Mike said...

I actually shorted the Nov $30 puts on RIMM today. IV is through the roof and I'd be happy to pick up the stock under $30.

Kevin Lam (Impacta LLC) said...

Hey Mike,

Thanks for sharing your thoughts. I think EVERYONE would be happy to pick RIMM up at $30 :), IV is certainly up there! I am looking for that next pop due to the US government or world governments pulling some move (not sure, and don't care either ha ha) that will inject a ton of "false hope" back into the market. That way I can re-position on the put side for cheap and profit when that hope starts fizzling away.

BTW, I checked out your blog at http://www.longshorttrader.com/, great stuff going on there!

--Kevin