Who Faded RIMM on the Open Today?

its easier to say that after seeing it happen, I dont think anyone knew it was going to go from 142+ down to 133 in 5 minutes after opening up.
 
I initially bought right off the open... obviously didn't work too well, so switched to shorting in and out, really need to learn to hold on :p Then bought in at 9:44 quickly for the jump up.
 
Rimm is down 60 cents and the jan 105 puts are trading down 70 cents from yesterday. What the... ?
Anyone know why all the puts are trading lower with the stock being lower as well?
 
Quote from Chuck Krug:

Rimm is down 60 cents and the jan 105 puts are trading down 70 cents from yesterday. What the... ?
Anyone know why all the puts are trading lower with the stock being lower as well?
More...


Yesterday was pre-earnings, you would have paid a premium for implied volitility. That IV is gone now.
 
Quote from Chuck Krug:

Rimm is down 60 cents and the jan 105 puts are trading down 70 cents from yesterday. What the... ?
Anyone know why all the puts are trading lower with the stock being lower as well?
More...

Implied volatility crashed. Welcome to the magical world of options...where even if you are right...you're not :confused:
 
Quote from options:

Implied volatility crashed. Welcome to the magical world of options...where even if you are right...you're not :confused:
More...

Just another toll for suckers to use and pay commissions, its really only good if you own stock you want to sell, and you can write covered calls collect the premium. I thinks that write, never been a big fan of options.
 
Quote from myminitrading:

Just another toll for suckers to use and pay commissions, its really only good if you own stock you want to sell, and you can write covered calls collect the premium. I thinks that write, never been a big fan of options.
More...

Hindsight being 20/20, if you would have bought RIMM puts at today's open, and NOT before yesterday's close, you would have done great.

As of right now, the Jan $130s are at $5.90 and they opened at .10
The Jan $140s opened at $5.70 and are at $12.00.

I love using the options to trade, you just have to have some understanding of IV.
 
Yeah i added some at open
Am familiar with implied volatility, just seemed too much of a change with yesterdays prices.
Actually in profit now for those caring lol
 
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