RIMM ==> The USVI Winner!

[jiesen]

It is always wise to take 50% of profits (at least) at the first target hit. But I was out of the office all day, so I did nothing. My father in law had a stroke; my mother got ill and was hospitalized, and a lady in my church had some kind of a heart attack--all in the same day.

I am not fully convinced that RIMM is headed North just yet. Wait and see mode for now.

Wow, sorry to hear it, NBB. You have my sincere sympathies. You know, they say bad luck comes in threes, so hopefully that'll be the last of it.

I hope everyone pulls through ok!

[New-born baby]

NBB, your 184 prediction was dead on. Nice job! Did you exit when 184 was hit yesterday, or did you revise your target lower?

It is always wise to take 50% of profits (at least) at the first target hit. But I was out of the office all day, so I did nothing. My father in law had a stroke; my mother got ill and was hospitalized, and a lady in my church had some kind of a heart attack--all in the same day.

I am not fully convinced that RIMM is headed North just yet. Wait and see mode for now.

[squarepusher]

NBB, your 184 prediction was dead on. Nice job! Did you exit when 184 was hit yesterday, or did you revise your target lower?

wow big comeback today for RIMM
________
WEED VAPORIZER

[jiesen]

NBB, your 184 prediction was dead on. Nice job! Did you exit when 184 was hit yesterday, or did you revise your target lower?

[New-born baby]

NB,
I fear ye be underestimatin' the significance of gap support.

We'll see. I could be. In normal times, I'd immediately agree with you. But it ain't normal. In normal times we'd get a bounce to $210 between here and Friday. Those option makers are eating a whole lot of dirt these days. It'll be interesting to say the least.

[spikefader]

NB,
I fear ye be underestimatin' the significance of gap support.

[New-born baby]

FYI: RIMM has turned very bearish on us

The RIMM chart has turned so very bearish now. The $210 bust of support was the first clue that RIMM was headed to $184 minus. The fall has been so sudden and powerful that the target has now moved lower: to $159.13. Nasty!

You RIMM longs out there, you'll have ONE chance, imho, the protect yourself. I expect, but cannot guarantee, that RIMM will RETEST THE BROKEN SUPPORT at $210. I expect that RIMM will make a run on Thursday and Friday for the expiry at this $210 support. My advice: don't be a sucker. Protect yourself by either selling into this strength, or buying a put, or some other strategy. The fall RIMM is going to take is going to be precipitous.

The rule is this: GAPS LIKE TO BE FILLED. So much for RIMM's runaway gap.

Shot at 2007-08-15

[New-born baby]

Now if I actually had enough knowledge about options, I would understand all that and I would be in the big money with you NBB. I know the basics, but I need to walk through what you did re. RIMM and what you just said! Again and again and again. But real experience is the way I learn the fastest. Maybe Spike is right, I need to paper trade for at least a year. But IMHO paper trading does not stimulate learning nearly as quickly as doing the real thing. I need someone to help me and let me follow their lead, without reprisals. I need real hand-holding and, believe me, I am a fast learner. I just need real experience. I need a mentor. I have an IB account now. Most of the trading of the underlying I do is in Scottrade, but it doesn't have to be that way.

I have the capability of being as sophisticated an options trader as so many of you here are. I just need to do it and I will learn so quickly exactly how the theories fit the realities! I'm getting tired of Bernie Schaeffer trying to sell me his "in the money" options trading program for big bucks. I already have the program to tell me where the unusual options activity is taking place in real time. I need to know how to take advantage of it. I need to know how to hedge my positions, short of just selling calls.

(Getting frustrated) River

You start, Riverbabe, just by selling the calls, when the stock turns against you. Do the Spike thing, ie, wait to enter a stock at support, with an identifiable target, when it has a bullish chart. Once you move into the green, ride the stock until it begins to turn against you. Then move to protect yourself through the correction. From this experience you will be preparing yourself for the next level of option playing: the condors, the straddles, the bull and bear call/put spreads.

BTW, what program do you have to identify the "unusual options activity?"

[riverbabe]

Now if I just sit here for a month without making any adjustments, I could possibly be sorry like you suggest. But options are so nice because you can buy and sell them during market hours. So if I think RIMM is bottoming, all I have to do to make that PUT pay me money is SELL the lower strike, in this case, the SEPT $195 PUT will net you $8.20. Hey, I only paid $7.50 for the put to begin with! Nice. And I can also sell the $200 SEPT PUT I bought, which is as I write up $400, too. So there are lots and lots of options with options.

I like these big, rich option chains. You can buy the stock and make a couple thousand if the stock declines, and make a few thousand when the stock rises. Nice.

Now if I actually had enough knowledge about options, I would understand all that and I would be in the big money with you NBB. I know the basics, but I need to walk through what you did re. RIMM and what you just said! Again and again and again. But real experience is the way I learn the fastest. Maybe Spike is right, I need to paper trade for at least a year. But IMHO paper trading does not stimulate learning nearly as quickly as doing the real thing. I need someone to help me and let me follow their lead, without reprisals. I need real hand-holding and, believe me, I am a fast learner. I just need real experience. I need a mentor. I have an IB account now. Most of the trading of the underlying I do is in Scottrade, but it doesn't have to be that way.

I have the capability of being as sophisticated an options trader as so many of you here are. I just need to do it and I will learn so quickly exactly how the theories fit the realities! I'm getting tired of Bernie Schaeffer trying to sell me his "in the money" options trading program for big bucks. I already have the program to tell me where the unusual options activity is taking place in real time. I need to know how to take advantage of it. I need to know how to hedge my positions, short of just selling calls.

(Getting frustrated) River

[New-born baby]

Yeah, but on the other hand, if the market bounces back, and RIMM takes off into the $250's like $$MM expects it to, your put would quickly lose all of its value, and you could end up paying back triple or more on your call.

That said, I do hope for your sake that RIMM hits $184 before turning back around and hitting our $258 target in 4 or 5 more weeks.

Thanks for the good wishes, Jiesen. I appreciate it very much. I don't always jump in with MM, but RIMM looked so good to me, I had to try to make some $$$ with him on this one.

Now if I just sit here for a month without making any adjustments, I could possibly be sorry like you suggest. But options are so nice because you can buy and sell them during market hours. So if I think RIMM is bottoming, all I have to do to make that PUT pay me money is SELL the lower strike, in this case, the SEPT $195 PUT will net you $8.20. Hey, I only paid $7.50 for the put to begin with! Nice. And I can also sell the $200 SEPT PUT I bought, which is as I write up $400, too. So there are lots and lots of options with options.

I like these big, rich option chains. You can buy the stock and make a couple thousand if the stock declines, and make a few thousand when the stock rises. Nice.

[mrmarket]

Yeah, but on the other hand, if the market bounces back, and RIMM takes off into the $250's like $$MM expects it to, your put would quickly lose all of its value, and you could end up paying back triple or more on your call.

That said, I do hope for your sake that RIMM hits $184 before turning back around and hitting our $258 target in 4 or 5 more weeks.

RIMM will be extremely sensitive to the overall market actions but without a doubt will outperform the market when the market does recover.

[jiesen]

$184, imho. What I did today with RIMM was sell the $220 SEPT call for $10.50, and buy the SEPT $200 put for $7.50. I think she moves lower before she moves higher. And I like RIMM alot, too, BillyJoe. IF RIMM moves below $200 as Aug/Sept moves on, I'll be able to keep the $220 call money, and the $200 put money should increase in value.

Yeah, but on the other hand, if the market bounces back, and RIMM takes off into the $250's like $$MM expects it to, your put would quickly lose all of its value, and you could end up paying back triple or more on your call.

That said, I do hope for your sake that RIMM hits $184 before turning back around and hitting our $258 target in 4 or 5 more weeks.

[New-born baby]

Mr.Market,
I agree, especially in this case. In every instance I can remember of selling a stock after a split, it proceeded to advance. Not all stocks, especially highly speculative ones will do this, but RIMM has proven itself to be a quality company IMO. Now, is 206 the point to buy?

-----------billyjoe

$184, imho. What I did today with RIMM was sell the $220 SEPT call for $10.50, and buy the SEPT $200 put for $7.50. I think she moves lower before she moves higher. And I like RIMM alot, too, BillyJoe. IF RIMM moves below $200 as Aug/Sept moves on, I'll be able to keep the $220 call money, and the $200 put money should increase in value.

[billyjoe]

Splits create liquidity. Also management usually does not split shares unless they have a feeling business will continue to be good.

Mr.Market,
I agree, especially in this case. In every instance I can remember of selling a stock after a split, it proceeded to advance. Not all stocks, especially highly speculative ones will do this, but RIMM has proven itself to be a quality company IMO. Now, is 206 the point to buy?

-----------billyjoe

[mrmarket]

MM,
Why do you love stock splits? RIMM splits 3:1 on August 20. What benefit will that be to share holders?

Splits create liquidity. Also management usually does not split shares unless they have a feeling business will continue to be good.