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How RIMM Caught My Eye Yesterday

|Includes: BlackBerry Ltd. (BB)
  • November 10, 2010
  • 12:21 | Bagger Vance RIMM ($58.90) Sold to Close RIMM 112010 55 C Nov 55 calls, at $4.30 +83%
  • 08:12 | Bagger Vance RIMM ($56.58) Bought to Open RIMM 112010 55 C Nov 55 calls, at $2.35

One thing I do NOT trade options on mostly is the fundamentals.  If they merge with the technical setups then it's more ammo for gains, but frankly it really does not make sense to a short-term option trader.  So, when the talk about RIMM blackberry is about how they are being clobbered by Apple and Google and others, they are doomed, etc.  all the talk - it certainly can affect psychology.  However, I'm all about charts and patterns, and yesterday's rise on robust volume in the first hour told me buyers were coming to the table - BIGTIME.  I see these things happen and it's 'shoot first, ask questions later'.  Solid winner for four hours!  Sometimes we play short term, sometimes long term.  The setup could not have been any better.  Check out the intraday chart below and notes.

by Bagger Vance

Disclosure: no positions