Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

TASR emails not shorting TASR or RIMM. We have another we like almost as much as MAGS, we'll see tomorrow.

Traders asked me about shorting RIMM when it moved down a bit from gap open yesterday but would not short it either, just locked in about 3 bucks and held the option calls. Why would you short a breakout stock?? I do imagine locking in profits but for the second time this year (first time was the ill-fated buys of KBH and LEN) I bought early in the after hours and locked in some more today but still expecting 100 in RIMM just as easily as 45 in NSM. When high relative strength stocks pull back and then there is news (i.e. RIMM) its time to buy and hold. In all probability I WILL NOT hold any RIMM stock through Friday's employment report, but probably the calls and definitely the puts. I like profits but will probably be stopped out of RIMM or get out if it moves to 100 BEFORE Friday morning or if it doesn't. We like profits and are bullish but not morons! There is a limit to where the RIMM baby Huey will go after Friday's report and the calls are a better risk management vehicle than the stock.

Might be an intraday play on the April 80 puts or April 75 both trade well (watched them today)with very little spread but shorting the mother lode is not the way to play. Holding some 85 calls April with some 80 puts might be the way to go. I'm flat TASR but the memories are warm!