AI
| Followers | 22 |
| Posts | 3641 |
| Boards Moderated | 4 |
| Alias Born | 09/21/2009 |
Tuesday, December 28, 2010 3:08:38 PM
RIMM PUT credit spread....
I just entered a RIMM PUT credit spread with a Jan expiration...Highlighted above.
24 contracts gave me $1368 in my account and had a Margin requirement of about ~$10,000. As long as RIMM stays above $55.00 by Jan 22nd, then I pocket the entire money making >10% on my money in less than 1 month. Break even for this trade is $54.44. If you can find trades like this every month...which is not crazy and not incredibly risky...you could accrue 10% / month at all times.
Here is the chart...
I think it is a safe investment. Could RIMM tank between now and then...sure...but unlikely. Earnings already came out, so the news is currently built into the price. There should be no news between now and expiration. As long as the overall market holds, I don't see RIMM hitting $55.00 or even $54.44 (Breakeven).
I just entered a RIMM PUT credit spread with a Jan expiration...Highlighted above.
24 contracts gave me $1368 in my account and had a Margin requirement of about ~$10,000. As long as RIMM stays above $55.00 by Jan 22nd, then I pocket the entire money making >10% on my money in less than 1 month. Break even for this trade is $54.44. If you can find trades like this every month...which is not crazy and not incredibly risky...you could accrue 10% / month at all times.
Here is the chart...
I think it is a safe investment. Could RIMM tank between now and then...sure...but unlikely. Earnings already came out, so the news is currently built into the price. There should be no news between now and expiration. As long as the overall market holds, I don't see RIMM hitting $55.00 or even $54.44 (Breakeven).
Now you will see that evil will triumph because good is dumb.
Discover What Traders Are Watching
Explore small cap ideas before they hit the headlines.
