BOT RIMM at @70 stop loss set at 63.........

Covered 10k at 4.62.

Started a position in RIMM today. Am going to look to write calls against it once it begins(hopefully) to move up. Not overly confident, will look to scale in as well.

could you explain this a bit (ie, why this is your approach, pros, etc)?

He thinks it will move higher but not by that much + he thinks future vol. will be low.

I think the reaction to their earnings report is a bit overdone. Taken from a Barron's article from a couple days ago:

"But at a forward price-to-earnings multiple of about 17, based on the February-ending fiscal year's projected-earnings per share, the stock is not pricey per se.

And what's most pronounced about this sell-off is that it is occurring as RIM is still posting quite admirable numbers. Revenue rose 37% in the quarter and subscriber additions jumped 45% from a year ago."

The chart also looks to be oversold, with support levels at 65 and 63. That said, I am not overly bullish on any stocks right now, much less RIMM. This is where calls come into play. The October $65 call is selling for $4 right now on a $67 stock. This would yield a breakeven of $63 excluding commissions. Rather, I am looking for the stock to go up a couple dollars before writing my calls, as the call value would go up almost proportionally.

I will also look to scale in, as I am certainly not good enough to jump in at the bottom. I also reserve the right to abandon my play altogether and bail, or write a $60 October call or $70 october call depending on price action.

Anyone else having major problems w/ IB right now?

What problems specifically? I can login, get quotes en see my own portfolio. I haven't done any trades so I'm not sure in that department.

EDIT: my European quotes just disappeared. But the market has been closed for over an hour so that might be the reason.

Would you consider writing Oct 65 puts RIMM for $2? Because that is what youre doing with your Oct $65 covered call play.

Seems a dangerous move to me.

thanks ahnuld, legacybegins. interesting info.

Long PSEC @ 10.25

In RNOW @ 14.11. I was trying to get it as soon as it blipped over 14, but it took off w/o me. Is there any way to place a buy order only AFTER the stock price reaches a certain limit?

Stuck on the day due to leftover positions in FAZ + SRS. The leveraged ETFs always give me uneasiness and I never feel like I've "nailed" the trade on them. Probably done w/ utilizing them until I sharpen my trading skills. Still got some AMD too, fwiw.

Going to wait another day or two before writing my RIMM calls. Hoping for 69.50-70 first, an analyst or two are going to upgrade this any day now IMO.

Any thoughts on my earlier comment?

Sorry, I read your question and kind of forgot about it earlier in the day. I understand the point you are making but from a psychological perspective I prefer writing covered calls as opposed to selling puts.

I am not savvy enough to explain the differences based on margin requirements, etc. But one advantage of my covered call RIMM play as opposed to selling the puts is that I have more control. I can wait until the stock ticks up to write the calls(which I am doing). I can write a $70 call, then as the stock falls I can write a $65 and be naked in 1 of these.

not have a clue about anything. In fact i put the tard in ******.

Its been a few weeks since you've trolled, are you back on your period?

I was on vacation last week.

I have an exercise for you. Take an average of RIMMs relative performance in the 1, 2, and 3 week periods post a 10pt+ drop during the past 3 years. Its sig negative.

Long CIT Oct-1 puts from 15 cents. Let's see what this pig does tomorrow when their loan expires.

Doubt this really affects anyone here, but the ISE is doing away with customer status with option orders. Good luck getting filled if you sit on a bid now. Apparently this is to "level the playing field" but in reality this only helps market makers and large institutions that didn't have priority before.

This might affect me a bit. I think I know what you mean, but could you clarify?

Customer Status basically lets you jump to the front of the line on bids and offers. I'm not sure if e-brokers get this status.

When you throw in a bid, you get moved to the front of the line assuming there are no other customer bids at the same price. If there are then you're behind them and everyone else is behind you including market makers.

So if you're dime bid for 100 UYG 6 calls and someone hits the bid on ISE for a dime you'd be the first to get filled even if the bid size is 10,000.