Rimm Earnings Play

Discussion in 'Trading' started by Samson77, Apr 7, 2004.

  1. I am very tempted to short rimm before the close today !!!

    I believe this may just be another Buy the rumor Sell the news play.

    Target 100.

    It's a tough call any thoughts !!!
     
  2. abogdan

    abogdan

    You might be right, so I would short a very small amount. This way if you are wrong you could average and come out.
    Cheers,
     
  3. If you play options, with implied vol on RIMM sky high, you can buy a front month April butterfly spread cheap. At 100, the risk:reward (1:9) is very compelling and your risk is small if wrong. I'm in a few myself as of this afternoon.
     
  4. That is a tough call.... I can only think that the news will be good after the bell when they start talking. I can't help but think this will soar and then split.....
     
  5. If you want to make money - trade small.

    Good luck :)
     
  6. Thanks for all the replies....

    I have no doubt that the report will be good BUT I really like the play.

    Here is the real issue, with the economic report tomorrow I expect the market to get really whippy (Low volume) so it is a real risk of being stopped so the play will be a sell (SMALL) to lessen the risk and I will add on if the position moves in my favor.

    I will sell market on close.
     
  7. Re-Opened after the halt at 111.30 and now trading at 103.00, -$6.78
     
  8. Maverick74

    Maverick74

    Waggie, RIMM is not crashing, it's selling the news. LOL.
     

  9. IMHO something similar will happen when TASR comes out with earnings.
     
  10. Stock split announced.... They exceeded earnings.
     
    #10     Apr 7, 2004