Market Calls

that PUT should expire 'worthless' if this is the medium term low

but if RIMM heads to $65 before $70 prior to news break then you may have more free money to extract from that PUT; if this is the low then you have sold puts at the correct point and can start to think about selling sep. calls or the like.

a student's two cents lol
 
Quote from MAESTRO:

Thank you , guys for your warm words and support. It feels great to be back!

My first trade:

Sell RIMM Sep 65 puts @ $2.60.

There is an announcement pending from RIM regarding their new product development plans and possible deal with Intel.

IV is high too.
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there is also an announcement coming out this week by Mot about a new product they call the "rimm killer".
 
Quote from vhehn:

there is also an announcement coming out this week by Mot about a new product they call the "rimm killer".
More...

I've been playing RIMM for long time. Most likely it will not go below 65 even after MOT announcement. Now, if it closes today at around $68 I'll write $75 calls also. After that, if it goes to 65$, I'll buy my calls back with the profit and sell another put at $60 and a call at $70. Because the combined premiums of OTM put and call is greater than min difference between the strike prices ($5) I will have about 90% chance to finish this trade with positive P&L. BTW implied volatility is high when the strangle combined premium becomes greater than min spread between the strike prices.
 
Quote from MAESTRO:

I've been playing RIMM for long time. Most likely it will not go below 65 even after MOT announcement. Now, if it closes today at around $68 I'll write $75 calls also. After that, if it goes to 65$, I'll buy my calls back with the profit and sell another put at $60 and a call at $70. Because the combined premiums of OTM put and call is greater than min difference between the strike prices ($5) I will have about 90% chance to finish this trade with positive P&L. BTW implied volatility is high when the strangle combined premium becomes greater than min spread between the strike prices.
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sounds like a plan. keep us informed how it works.
 
I looked over MOT and immediately opened a short position, a third of which i covered before the close. My intent is to add if it cannot break todays highs and to cover in the high 19's if given the chance. Thanks to the poster for bringing this speculation to my attention. Good trading....
 
fwiw... I had some decent chems trades last week. Perhaps looking over the speculation in the chemicals sector could yield profits this week. There is management and analyst press as well. Things could heat up fast....esp. some servicing drillers as part of operations. The good companies are not hard to find and the bad ones stick out like a white shirt through an open black pants zipper. I'm trying to not influence one way or the other but the sector in general is seeing improved margins and a decent technical picture. Good trading...

(MOT is most likely three days out for me--most of my trades last less then 20 trading days and sometimes just minutes--if the trade goes as planned i will have an exit by 11am wednesday, to be exact...the LT outlook can change but the company is considered stagnant to change by some traders and analysts, but what else is new--they are trying hard to get in front)
 
Quote from vhehn:

there is also an announcement coming out this week by Mot about a new product they call the "rimm killer".
More...
Wall Street news service outlet: "We're hearing that MOT is trading lower due to negative feedback regarding MOT's new "Blackberry-killer" handset introduced last night, specifically noting a poor user interface and keyboard."
 
RIMM: As I mentioned yesterday, I completed the strangle (sep 70 call, sep 65 put). Combined premiums are 3.50 + 2.60 = 6.1.

My target profit is $0.5 per strangle. If it goes above 70 I'll buy back my puts. And write $75 calls. If it goes below $65 I'll buy back my calls and adjust my position by selling $60 puts and writing additional $70 calls. So far so good.
 
Bought back my puts ($0.4 profit). Will write $75 calls right now. Tomorrow I will complete my new strangle if the price stays above 70.
 
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