Option Investor

Trade Alert - RIMM

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Another Exit Opportunity...

Conservative traders who participated in the RIMM position have yet another chance to close the spread for "break-even" or possibly a small profit. As of 11:25 AM EST, the stock is up $3.24 at $76.44 and the combined bid/ask in the spread is $0.45. A "net-debit" closing order would be filled at that price on three exchanges and individual trades would likely yield another $0.05 to $0.10 per contract. We know there are readers who do not want to hold the position over the earnings date (4/5/05), so we are pointing out this opportunity to avoid the uncertainty of RIMM's upcoming announcement.

Again, we plan to track the position (for all the readers) until it expires, but we are recommending that anyone with a conservative outlook, including those who are trading the positions in the "model" MCM Portfolio, use this rally to close the APR-60/APR-65 put-credit spread. The initial target should be $0.35 to $0.40 per contract, which, depending on your entry price, would provide a small profit in the position.

MCM Staff

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