Trade Update Dec 20th, 2012: With RIMM up 16% in the 2 weeks since I initiated the Dec weekly 11.50 / Dec regular 12 Put Calendar*, my trade has lost two thirds of its value. The implied move (~12%) in the options market is below what I would need to on the downside to break-even, so holding these puts into the print is a very low probability trade. Not only do I have to get the direction right, but I need to get an out-sized move.
Original Post Dec 6th, 2012: New Trade $RIMM : Can Heins get the Turnaround Job Done?
Event: RIMM reports fiscal Q3 earnings on Dec 20th after the close. The options market is implying about a 10% move which is basically inline with the 4 qtr avg move of about 10.5%.