How did RIMM & my trade fares?
Research In Motion Ltd. shares surged as much as 20% early Friday after the company issued better-than-expected quarterly results and a bullish forecast on strong demand for its newest BlackBerry products.
RIM (RIMM) (RIM) shares traded as high as $104 on heavy volume after the Canadian pioneer of wireless e-mail devices said late Thursday profit rose 27% and sales rose by more than a third in its fiscal second quarter.
Very excited and happy that my first piece of research turned out to be what I have anticipated. On 28th Sep, I put on a naked call Oct @85 and bought 3 contracts when market opened in US early trading hour. Next morning I quickly read the news and realised RIMM indeed surge up to $101 during late trading hour but closed at $86. This resulted my options trade to experience a roller coaster day and ended up losing $30 instead. I was quite sad that I missed the chance to take profits when it hits the $100 range. An hour ago, I log in to optionsxpress wanted to set contingency on my naked call, but, to my horror suprise, the stock price was at $102.92!!! My profits of my trade was at $3900+ !!!
As I am not good in TA and doesn't what caused the stock to rebound upwards, I decided to run with the profits first and do my analysis later. I wanted to set contigency at $100 level in case the stock continues moving upwards but I don't know how to put on the trade. In the end, I sold to market immediately and mins later the order was executed.
Total Net profit of $3,989.93 =)
It's also a pity that I did not put in CRB trade, if not, I am able to see how the strategy works and how much profits it will bring in.
Overall it's a nice feeling but I have to be sure what have I done correct, what lesson was learned during these 2 days. This weekend I will discuss with my teacher and update again.
posted by $magnet @ 12:38 AM
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