No One

[Lord DarkHelmet]

I considered doing a short strangle instead...






The credit would have been $1.16 / contract. I could have sold about 8 contracts to stay around the ~$10,000 margin requirements...so that I was comparing apples to apples. The margin requirements for a strangle are different than a spread. 8 contracts at $1.16 would have only netted me $928 in my account and I would actually have more downside, since I was exposed on the CALL, whereas the PUT credit spread didn't have that upside exposure.

So, as it is, the PUT credit spread offered me the better trade. I could have tightened the spread or the strangle more...but I am uncertain what RIMM will really do over the next month and I didn't want to gamble too much...I feel pretty safe with either trade at the strikes I set.

Only time will tell.