Rimm

call is cheap.

 

I would think they miss earnings.

 

no doubt about it

their tablets haven't been selling well(very poor sales), they're going to have to take a big write down on them

I'd be selling calls to the uninformed

 

how is what you said not already priced into the stock?

 

That they revised earnings down would be priced in, but usually not an earnings miss.

 

As you implied to the other guy, I believe there already was a write off done and RIMM fell that market day. Not to say I'm positive on RIMM by any, any means, but it's not like its near a 52-week high or anything.

JJacksET4

 

guess everyone thinks so.

 

Selling calls is a bit risky on this one isn't it?

 

Dec. 15, 2011, 4:23 p.m. EST
RIM earnings fall; forecast below Street targets
SAN FRANCISCO (MarketWatch) -- Research In Motion Ltd. reported a sharp drop in earnings for its third fiscal quarter, and issued a forecast for the current period that was well below Wall Street's expectations. For the quarter ended Nov. 26, RIM (NASDAQ:RIMM) reported net income of $265 million, or 51 cents per share, compared to net income of $911 million, or 1.74 cents a share, for the same period last year. Adjusted earnings came in at $667 million, or $1.27 per share, for the recent period. Revenue slipped 6% to $5.17 billion. Analysts had forecast earnings of $1.19 per share on revenue of $5.27 billion, according to consensus forecasts from Thomson Reuters. For the fourth fiscal quarter ending in February, RIM said it expects earnings to come in the range of 80-90 cents per share - analysts were expecting $1.18 per share. Revenue for the period is expected to come in between $4.6 billion and $4.9 billion, with smartphone shipments in the range of 11-12 million units for the period. Analysts were expecting revenue of $5.12 billion with 13.1 million units shipped for the period.

 

I prefer to avoid playing earnings reports if possible - too much of a coin toss. But RIMMs report date was announced after I had already set up a Bear Call Credit Spread on 11/28/11, and things still seem very negative for the company. Decided to let them flip the coin, rather than close the trade. Got Lucky this time.
Whew!

12/15/11:
"LOS ANGELES (MarketWatch) Ñ Investors pushed shares of Research In Motion Ltd. sharply lower Thursday evening after the mobile-devices maker issued a weak quarterly forecast...
Research In Motion shares RIMM dropped 7.1% to $14.06 in heavy volume."