Friday, September 25, 2009

Is RIM Taking a Page from Apple? Spectacular Profit with Straddles

Here is the update from our post 2 days ago. The straddles were computed with our StraddlesCalc V2 tool, which indicated that three (3) 90 calls and two (2) 85 puts (or any multiple) should be bought, for a maximum move required of 13.81%.

RIMM has issued weaker than expected guidance for Q3. As of 9:40AM RIMM moved down 15%.

The straddles we posted are up pver 50 so far%.

So the question is whether growth is really declining for RIMM, and whether will continue to go down, or is RIMM simple taking a page from Apple (APPL). APPL always guides lower, and then beats expectations - producing tremendous profits for shareholders and management.

Note: You may receive technical analysis and alerts of RIMM, sent automatically to you by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

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