Stock Trade Update: Long RIMM…Yes It’s A Long!

Chart looks bullish with W pattern, but who knows… probably more conservative play here? e.g.:
-1 Call 80 May
+1 Call 80 June
Debit: 2=2.8-0.8 (at present)… So the spread between them will rise as RIMM will be approaching the 80$ area.
Less agressive, less profitable, less riskier strategy. partly covering Theta issue. Probably will go long it.

This is a more conservative strategy and is good to limit your losses. Calendar spread.

this stock is extremely high people buying short on 70-75 area. i don’t why make you buy this stock, not even wait on pull back.

Sold the RIMM call @ $8 for a small gain of 0.45…

Might look to add some more longs around $spx 800 levels.

There is a nice arbitrage play for C:

You can establish a conversion strategy here by:

-1000 C shares
- 10 of 3 May Put (or 4 Put)
+ 10 of 3 May Call (or 4 Call)

What is the idea? IV % for C puts is by 1.43 times higher than for C calls… So by implementing this strategy we are selling high IV of puts. excess of volatility..
It does not generate huge profis… but if you have some free money you can implement it.
Actually, I have never before sold short any shares (just played puts strat.), so if I will be forced to cover (?) I will have to close some Calls and Puts respectively.

Some ideas:

Short Silver and Gold - to 8-9$ range for silver and 800-700 for gold…Silver: some industrial impact; demand is diminishing. Gold: Expect USD to strengthen vs Euro to 1.16 and probably to 1.00. Expect that deleveraging will go on..There also will be another press to Gold by FED just to persuade that USD is still the best asset. But, still, GOLD and Silver can bounce a bit before I will short it.
FXE - euro vs USD.. to buy some puts.. probably June or better July.. in some days.. will initiate a small introductory position.
FAZ - buy a bit of it… before stress test are out.. should also be ok..but probably.. some banks will be sacrified..
STI - will buy some Calls… after earnings..hope it will go down..upside to 20 and 25 after rally will go on..MS wanted to buy some regional b. rumour?
Met - Sell Short
FRE- July 1 calls .. garbage.. but even such garbage as AIG, C, GM still can fly…huge risk.. small position..
anyway..main part is in cash or in C conversion play..

Would like to post another idea for AMZN:
today AMC (after market close) AMZN announces its earnings, so it likely will be very good, but I still doubt that it can continue its upside movement now…Obviously IV for May options is quite high, so we can sell a straddle:
- May 80 Call for 5.95
- May 80 Put for 5.15
Some hedgies needed here:
+ May 70 Put for 1.67
+ May 90 Call for 2.15
Total Cost: - 7.12, also it is a max profit
Max risk: 2.88 (plus commissions)
Time plays for us , as well as IV will drop significantlu within some days…can be closed friday before market close

Added also some vertical spreads on SDS:
+ 70 may call
- 80 may call
for 2.25 each. Market strives to correction (830 , then to 760-770?)
gold and silver shorts should be sweet soon…

Just stole it from a discussion thread at marketwatch:
A 100 megaton nuke warhead burst over a city of one million inhabitants.
There were 3 survivors.
The survival rate was “better-than-expected.” The best comment, isnt’t?
Are you still alive? no more comments? have another ideas?

i made a blog today , that is http://www.investeye.com/charles/

I’m still here.

While the market have been homohammering my accounts, I’ve been slowly loading up on puts and shorts.

There are 2 sectors that I’m watching currently might break down hard if we correct from here on…

will do a post on them this weekend.

stay safe!

http://www.oaktrade.com is my address now , so funny .