Big Bet on RIM Rebound
RIMM adds 20 cents to $10.14 and a Jan 8 – 14 risk-reversal trades on the Blackberry-maker at 14 cents, 24000X on PHLX. A source on the exchange floor confirms that the massive block of puts was sold to buy calls. The position looks opening (volume exceeds open interest) and not tied to stock. The bullish combo is taking advantage of a bit of skew, as implied vols in the Jan 8 puts are near 67 compared to 60 for the Jan $14 calls. RIMM hit a 52-week low of $9.57 on Monday and has lost three-quarters of its value over the past twelve months. Bloomberg had an article last week suggesting that some investors now believe that a sale of the company is now the best option. Earnings are due on June 28th.
Category: All Stocks, Technology
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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.
