Sorry!! The article you are trying to read is not available now.
HOT TAGS:  

Bearish RIMM Options Play

Print comment Post Comments
OPTIONSMITH STRATEGY
DailyFeed
The following is an example alert published yesterday on Steve's OptionSmith newsletter

Read more: http://www.minyanville.com/mvpremium/2012/11/16/using-both-call-and-put/#ixzz2DRv0ADlM
The following is an example alert from Steve's Optionsmith newsletter
The following is an example alert published yesterday on Steve's OptionSmith newsletter

Read more: http://www.minyanville.com/mvpremium/2012/11/16/using-both-call-and-put/#ixzz2DRv0ADlM

As most know, shares of Research in Motion (NASDAQ:RIMM) have nearly doubled over the past few weeks on a combination of simply no sellers left, some thinking that the new BB10 will actually sell well and some analyst upgrades. This led to a virtuous loop of short covering, which led to more price momentum and more analyst upgrades.

This seems to have run its course. My thinking with this position is that shares will be able to hold the gap above $10 until the December expiration. Then, come the January launch of the new phone, whose date has been delayed multiple times and is still undetermined, reality will sink back in. RIMM has lost its shot at regaining relevance. All the holiday shopping will be done, consumers are unlikely to wait and will be tied to their new Apple or Samsung devices. Corporations have already been swiftly shifting away from RIMM.

The stock should revisit single digits in early 2013.

I’m establishing a moderately bearish position in RIMM through a modified calendar spread. That is, I’m selling a nearer-term, closer to the money put and buying a slighter greater amount of longer term further out of the money puts.

For the full trade details, take a 14 day FREE trial to OptionSmith.
POSITION:  Position in RIMM options.
TICKERS:  NASDAQ:BBRY   

TICKERS