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RIMM None

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Research In Motion - RIMM - cls: 70.02 chg: 2.08 stop: 66.85

Company Description:
Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity to data. RIM's portfolio of award-winning products, services and embedded technologies are used by thousands of organizations around the world and include the BlackBerry wireless platform, the RIM Wireless Handheld(TM) product line, software development tools, radio-modems and software/hardware licensing agreements. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. (source: company press release)

Why We Like It:
It may be time to speculate on another leg higher in RIMM. The company put out a press release this morning stating that their Blackberry platform has surpassed the three million subscriber mark. The company's press release said the last six months saw more than one million new customers. Short-term technicals like the RSI and stochastics are bullish and its MACD indicator has produced a new buy signal (as of Friday). Now before we continue we feel the need to remind readers that RIMM can be very volatile and it tends to be boom or bust for option plays. This is a high-risk candidate and traders should plan their strategy accordingly. Not only does RIMM itself make this a high risk play but the NASDAQ, while inching higher, is still under resistance at the 2000 level and its 200-dma's. We suggest that readers use a trigger at $70.51 to open the play. We'll target a move toward the $76.00-77.00 range since the P&F chart shows resistance near $76.00. Our initial stop loss will be $66.85. This is a wide stop. More conservative traders should consider a tighter stop. Really conservative players probably want to consider NOT playing this candidate.

Suggested Options:
We are suggesting the June calls.

BUY CALL JUN 65.00 RUP-FM OI=3061 current ask $7.60
BUY CALL JUN 70.00 RUP-FN OI=7824 current ask $4.50
BUY CALL JUN 75.00 RUP-FO OI=7515 current ask $2.50

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 04/05/05 (confirmed)
Average Daily Volume = 1.7 million
 

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