Research in Motion Earnings Trade Ideas


RIMM, $RIMM is building a bull flag under 14.40 resistance, a level that has been important in the past. the RSI has become overbought and the MACD is near a cross to negative. The short term is set up for more consolidation or a pull back. That said the trend is higher and all of the Simple Moving Averages (SMA) are in agreement. A move above that resistance has a measured Move higher to 16 and there is resistance higher at 17.45. Short interest is high at over 20%. Support below comes at 12.10 and 11 followed by 10.25 and 9.65. The reaction to the last 6 earnings reports has been a move of about 15.83% on average or $2.20 making for an expected range of 11.60 to 16.10. The at-the money December Straddles suggest a roughly similar $1.50 move by Expiry with Implied Volatility at 240% above the January at 100%.

Trade Idea 1: Buy the December 14 Straddle for $1.53.

Trade Idea 2: Buy the December 14/16 Call Spread for $0.50.

Trade Idea 3: Buy the December Monthly/December 28 Expiry 16 Call Calendar for $0.18.

Trade Idea 4: Buy the January Monthly 14/17.5 Call Spread for $1.00.

these trade ideas were given to subscribers just before 2:00pm.

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Dragonfly Capital Views Performance Through November 2012 Expiry

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