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RIMM +60%, RHT +30%

Published on December 21, 2007

RIMM +60%, RHT +30%

December 21, 2007

(for details pls visit www.OptionPundit.net)

I earlier mentioned to take advantage of high leverage that is available on expiration Friday, especially for the earning’s strategy. These were the only two companies I played this time around and luckily both exploded. You may ask why lucky, because I think no one can forecast outcome of earning announcement with certainty. One can only make a bias so I chose a bullish bias for both.

rimm-earnings-12212007.png Here is RIMM Trade, bot Dec 120calls for $0.87 and sold for $1.40 (Gains +60.9%). Of course it could have been sold for much higher at the opening, but wasn’t I greedy. Yes I was!

rht-earnings-12212007.png Here RHT’s trade, ok so I was greedy in RIMM and therefore decided to sell RHT quickly (bot for $0.65, sold for $0.85, Gains +30%) but guess what, it is now trading $1.15!! That’s the fun part of trading, there is always a tight walk between greed and fear.

One thing to remind my readers, I don’t play speculative trades often. If I do, my % of capital allocated for speculative trades is less than 4% of my portfolio capital.

Profitable expiration Friday, OP

One Comment

  • Avatar Tony Chai says:

    Hi OP :

    Congrats on your trade on RIMM and RHT.

    As predicted by you in an earlier entry, RIMM made a move of at least 10% for its earnings announcement.

    Here wishing you and your family a very Merry Christmas!!

    Yours Truly,

    Tony Chai

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