RIMM Redemption?

Do options traders see redemption in Research in Motion? Quietly, the stock has been one of the biggest movers on earnings, jumping either up or down an average of 13% on the last eight reporting dates.

Call activity is again extremely active today, just one week before the stock releases results, with both in-the-money and out-of-the-money buying along a number of different expirations.

When RIMM last reported, the stock fell 16% despite beating the street by three cents. In fact, the stock has bested analysts' expectations in the last two quarters, yet it still posted double-digit percentage declines.

With little rhyme or reason to the stock's reactions, it's no wonder investors are looking to risk less while possibly making more via the options market. We'll offer one such options trade tonight that could profit whether RIMM goes up or down.

Questions, comments send them to us at: optionsaction@cnbc.com

Contact Options Action

  • Showtimes

    Fridays, 5:30p ET
    Saturday, 6a ET
    Sunday, 6a ET
  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

Latest Video

Sponsored Related Links

More on thinkorswim by TD Ameritrade

  • Make sure you’re always keeping up with the market with up-to-the-minute news and breaking stories. Move on possible breakout stocks and options with potential opportunity. Plus, get in-depth analysis on futures and forex in one seamless, integrated experience. Join TD Ameritrade and trade commission-free for 60 days + get up to $600 cash.

You Make the Call

  • Options Action: NWSA

    Mike Khouw, Options Action trader, shares his view on News Corp stock on the heels of testimony from Rupert Murdoch before British Parliament.

  • Do you have a question for the Options Action team? Options Action selects a viewer's question and gives the answer on the show's Make The Call Web Extra video.