Research In Motion (RIMM) has been locked in a steep downtrend since February and printed its post-recession highs in September, 2009, so it is hazardous to make any upside predictions for the stock (for example, “Judgment Day for Research In Motion Could Yield Upside Surprise“). However, I could not resist making the observation that RIMM is finally demonstrating more upside momentum than it has in a very long time.
*Chart created using TeleChart
Buying volume is strong. The stock has now made a post-earnings collapse high, albeit marginally. At a minimum, the post-earnings low has become a clear line drawn in the sand as RIMM prepares to buyback stock as early as July 10.
As my latest puts slowly erode, my overall position has become net long again. I do not plan on buying any more puts on RIMM and will instead ride this out for whatever it is worth. I plan to monitor trading in the stock more closely as July 10 approaches.
Be careful out there!
(Click here for archived commentary on RIMM)
Full disclosure: long RIMM shares and puts