Registered: Dec 2006
06-28-12 10:16 PM
Quote from Robert Weinstein:
no, I am still long rimm calls. I been writing weeklys up until about 10 or so days ago and I wrote the April 15s.
I am currently underwater with RIMM, but not by a whole lot as the covered calls have brought my basis to around $14.50ish
The current price is near the carry away dead price so I see little downside risk relative to an upside bounce on good news.
Still is starting to look much like COCO did last year. Only with COCO I sold every bounce and bought back most of the drops. I may add some RIMM to bring my basis down further and write calls against it. upon a bounce let it go and if it fades back lower pick some more up.
The problem I have with this strategy is Rimm at some point is likely to move up over $20 again and a lot will be left on the table if I am only writing covered calls. I will have to see what the premium levels look like to decide.
it's been a while Bob but have to keep you honest since you sounded so sure on this trade