My RIMM Condor June Spread -- Life in the Fast Lane

Discussion in 'Options' started by DeltaSpread, Jun 18, 2009.

  1. Any input or comments welcomed.

    I am long the June $75 strike calls and puts & short the $70 strike puts and short the $80 strike calls at a total debit of $4.00. I definitely put on way too many contracts for my liking. I can say that now of course in hindsight seeing as RIMM closed at $76 and change in AH. My break evens are $79.00 or $71.00

    Thinking at the open to close out the short positions for possibly a nickel or dime. The real fun will be legging out of the long calls or puts. Or I could just dump the whole spread as one credit. Might take that option if I can get out with a $3ish credit. Wonder how much premium the IV crush and the one day expiration will suck from these at the open.

    Ironically, I have been in this scenario before with some other complex spread positions on the VIX, eBay, and CME. In each case, I could not take the heat, closed the spread before the 4PM closes and got clobbered with enormous losses. But had I just stayed put and sat on my hands, the spreads would actually have either been a push or profit.

    Just to note:
    *I have also had a good degree of success as well, where the underlying moved so far out of the spread range I just let the entire spread expire. GOOG and ISRG for instance.

    *RIMM PPS though has made monster moves just in the last 10 minutes on an expiration Friday many times in the past. That is why I am tempted to just get out the popcorn for the day.
  2. Oh and RIMM has a history of huge post earnings gaps, but of course not this time. I wonder if they are gonna pin it in the mid $70's? Tons of $80 calls and $70 puts bought in recent days.
  3. tons of those strikes sold too