Trade Alert – Update on our RIMM short
As for RIMM, here’s the discussion we had yesterday on TradingWithCody.com’s Subscriber Chat after the market closed:
ChromeHearts5December 20, 2012 – 5:12 pm
Actual EPS: -$0.22 EPS Estimate: -$0.35 EPS Surprise: +37.1%, +$0.13 Actual Revenue: $2.70 Bil Revenue Estimate: $2.65 Bil Revenue Surprise: +1.9%, +$49.11 Mil
CodyDecember 20, 2012 – 5:43 pmWell crap. It’s up after hours here. That said, deadaphid is right that many times the action immediately after the release reverses the next day. Sometimes during the conference call even. But we won’t know til tomorrow for sure how it’ll actually trade out.
Cody back here in real-time now. The stock’s down today big time, as the conference call commentary did indeed end up freaking out the longs and emboldening the shorts. RIMM’s stock is, would you believe, nearly 25% from where the highs it traded at after hours yesterday. It was at $15.60 at one point before the call started after the filing came out. Now it’s about $12.
I think RIMM is, as I’ve said for a long time, still doomed. I’m covering my common stock short and I’ll start scaling out of some of these puts that are up big since I got filled on them yesterday. With current estimates now at a less of $1.50 a share next year and with no profit path in sight, this stock’s got very little support now. It might rally into the BB10 launch next month and if it does, I’m definitely going to look at re-shorting officially. I’ll probably sell down more than half my puts today and over the next couple days or so and let the rest ride.
