News Focus
News Focus

Replies to post #90 on No One

Replies to #90 on No One
icon url

Lord DarkHelmet

12/31/10 11:05 AM

#91 RE: Jedi RDHLightHelmet #90

I like the price points and the option prices. Plus, the earnings already came out, so there should be no real news between now and Jan 22nd. My strangle success depends on RIMM moving somewhat sideways. I like the odds at this point. As long as the overall market holds up. RIMM would probably follow the overall market, so that is my only concern. But selling any PUTs on any companies is somewhat at the mercy of the overall market trend.

I have a few other I have been following also.

Boeing (BA)is similar to RIMM in its price point and options prices, just to give you another security. Realize that you are selling the options...so you are selling the time value, which the majority of the price is due to its "implied volatility". You could sell Coca-cola(KO) each month, but the volatility is low, so the premiums are lower as will the rate of return. That is the risk.