Daily Stock Market Equity and Options Trading Commentary

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Wednesday, December 3, 2008

RIMM Options Looking HOT!

Today the once $80+ Billion Research in Motion was trading for less than $20 Billion. That's right the once $140 per share giant was trading near $35 a share today. First off I must say that RIMM at $140 is far overvalued, but that's beside my point. With the new storm selling out almost everywhere I think they might be able to beat earnings. Historically when RIMM reports better than expected, they rally 20%+. I think that this may be the case. RIMM has been beaten senseless in this vicious market, and I think it's time they beat for a quarter instead of miss (like they have the last 2). I bought calls today for the December 45 strike for $50 per contract. If I double my money between now and the day RIMM reports, which is the day before the contracts expire (December 18), of course I will sell half my contracts and let my free contracts ride. Pure speculation like this can either make or break you. I am hoping to hit a real homerun with these.

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