Call Options on RIMM on 11/7/2012

Research In Motion (RIMM) moves with its customers. The company provides wireless hardware, software, and services worldwide. Its BlackBerry smartphones handle mobile voice, e-mail, and text messaging, as well as Internet access and multimedia applications. RIM also makes the Playbook tablet computer, provides software development tools, and makes modems that other manufacturers incorporate into portable devices. In addition to hardware sales, the company generates revenue from network access fees and software licensing fees. RIM sells to wireless carriers, resellers, and corporations. BlackBerry devices are offered by wireless network operators including AT&T Mobility, T-Mobile USA, and Verizon Wireless.

Stockwinners is bullish in this name for the following reason:

1. Stock is hovering around a critical technical level and is poised for a technical breakout.

Trade: Buy 1 Jan 9 call for less than .83

Note: we are only buying a call now and hoping to make it a spread if the trade works on our favor

Breakeven & Profit/Loss analysis

• Breakeven on 9.83 by Jan expiration
• Profit above 9.83 , Max profit is unlimited in this trade
• Lose up to. 97 between 9.83 and 9.00 , Max loss .83 below 9.0

The payoff table is presented below:

Trade Buy 1 January $9.00 Call at $0.83 For a net debit of $0.83 Profit/Loss Analysis Breakeven at $9.83 Maximum profit is unbounded Maximum loss is ($83.00) at strike of $9.00 Closing Summary Sold 1 January $9.00 Call at $2.80

Position closed on 11/23/2012 at price of $2.80 with a 237.35% gain in 15 days.

Updates

11/23/2012 9:51:45 AM

Stockwinners is taking profits off the table on this trade. adjust your stop-loss if you decide you want to stay long on this trade. you can also short another call against your position to to lock in some profits. 

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