Trade not activated yet as market is up today.
Technical Analysis:
RIMM is currently price at 61.41. The price is in a downtrend, dropped below 50ma two days ago. It is also below 20ma. The price is sitting on the lower Bollinger band. The Bollinger band is showing a sign of expansion after contracting for two weeks. MACD history is showing sign of downward momentum. The price broke a neck line of a Head-and-Shoulder pattern.
Volatility is at 52 week low. Expectation is that it will go up.
Fundamental:
Earnings on 12/17/2009. The price gapped up the next day, but the gap is filled on 1/12/2010.
Expectation: The possible support is $58, and the next is around $55. $55 is also the measured move of the Head-and-Shoulder pattern. The price target should be hit in two weeks in the market is bearish.
Trade structure:
Leg into a bear put diagonal trade. BTO June 60 put at $5.7 first. When the price drops, STO either Feb 60 put or Feb 55 put, depending on the price movement.
Primary exit: 30 to 50% ROI.
Secondary exit:
Slightly bullish: Convert the trade to Put calendar (STO Feb $60 put).
Very bullish: Convert the trade to Bull put calendar (STO Feb $65 put)
Posts
Joseph activated the put trade for RIMM when it went up 2 days ago. It proved to be temporary.
ReplyDeleteBTO June 6o Put for 2.09
Sorry, the trade should be BTO June 60 P for 5.09
ReplyDeleteRIMM turns bullish. Adjust the trade to double calendar.
ReplyDeleteSTO FEB 60 PUT at 0.9
STO FEB 65 PUT at 2.78
BE for FEB expiration date is $59.7 and $67.4
If the price keeps going up, will roll the FEB 60 put to FEB 65 put.
Close the trade with slight loss today since RIMM is above $67.4.
ReplyDelete