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


    You might be right, so I would short a very small amount. This way if you are wrong you could average and come out.
  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


    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