Add RIMM Puts
Increase Downside Protection
PLAY: Buy the RIMM March 65 Puts (O:RIMM 10O65.00) at or under $2.65 (or best price) good for the day. Place a protective stop limit at $1.80 and a pre-determined sniper sell at $3.90.
Dear Bottarelli Research Member,
The major market averages remain skittish, as shown by today’s “lazy” trading below the Dow 10,000 level. As a result, we must remain positioned on both sides of the trading ledger, which is why I feel it’s now a smart idea to add downside puts in the technology sector. Notably, we’ll play a coming dip on Blackberry maker Research in Motion (RIMM – NASDAQ).
From a chart perspective, RIMM looks like it can’t push above the $68.00 level. Plus, it’s interesting just how weak technology has been lately. For example, Amazon just finished reporting great earnings, and they failed to extend their rally. Plus, AMZN was upgraded this morning, and yet the stock still can’t muster up a gain above $1.00.
At the same time, I also feel that the gap between the Blackberry and the iPhone is widening. In other words, Apple’s iPhone continues to get better while the Blackberry is not improving nearly as much. What’s more, this week’s Barron’s even said that Motorola is making a comeback (I’ll believe that when I see it). Since RIMM doesn’t report earnings until March 31st, we don’t have to worry about any news-driven risk. Therefore, let’s get positioned to play a pullback to around $60.00 using March puts.
PLAY: Buy the RIMM March 65 Puts (O:RIMM 10O65.00) at or under $2.65, good for the day. Place a protective stop limit at $1.80 and a pre-determined sniper sell at $3.90.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.
Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.
CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.