Six of the ten most active contracts in early trading Friday morning are RIM options. For the first time in over a year, shares of the Blackberry-maker are up on profit news. The average post-earnings loss over the previous four quarters was 15.7 percent, including a 19 percent tumble on 9/16 and a 21.5 percent swoon on 6/17. Today, however, RIMM shareholders are enjoying a 4.4 percent post-earnings move higher and expiring Weekly $15 calls are the most actives, with 9850 traded and about half the volume traded on the Bid. Apr 13 puts, Weekly 14 puts, Apr 15 calls, Weekly 14 calls and next week’s 15 calls are seeing interest as well and levels of implied volatility in RIM options oved down 39 percent to 50; which is the lows of the year, but still well above the 52-week lows of 31 seen in April 2011.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.