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Options Action: Gaming RIM Ahead Of Earnings

Tuesday, 30 Mar 2010 | 5:52 PM ET

Considering RIM has rallied 10% this year, how should you game this stock ahead of earnings on Wednesday?

Scott Nations of NationShares suggests an options trade. It follows:

RIM (stock at $74)
Buy June 75 put for $6
Sell June 65 put for $2

How Nation’s Trade Makes Money
Losses above $71
Profits between $71 and $65
Protected below $65
Losses below $59

For more on this trade watch the video.

Options Action
The options traders should make money on, with Scott Nations, NationShares.




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Trader disclosure: On March 30th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (IPI) Call Spread; Najarian Owns (MRVL); Najarian Owns (CLF) Call Spread; Najarian Owns (YUM) Call Spread; Najarian Owns (DOW) Call Spread; Finerman's Firm Is Short (IYR), (IWM), (SPY), (MDY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Preferred; Finerman Owns (BAC), (BAC) Leaps; Finerman's Firm Owns (FLIR); Finerman Owns (GOOG); Finerman's Firm And Finerman Own (GGP); Finerman's Firm Owns (NOK), (OSIP); Finerman's Firm And Finerman Own (WFC); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Is Short (EL); Terranova Is Short (GS); Terranova Is Short (CAL); Terranova Is Short (UAUA); Terranova Is Long May 2010 Crude Oil Futures; Cortes Is Short Euro; Cortes Is Short Treasuries; Cortes Owns (IWM), (IBB) vs. Short S&P; Edwards Owns (TM), (UUP)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (GOK)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLI)

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Edwards Owns (GS) For Clients
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Edwards Owns (RIMM) For Clients
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FBR Capital Markets Is a Market Maker Or Liquidity Provider For (NFLX)

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Coburn Is A Partner In Buckeye Delta Fund
Buckeye Delta Fund Owns (AAPL)
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Buckeye Delta Fund Owns (RIMM)
Buckeye Delta Fund Is Short (MOT)
Buckeye Delta Fund Is Short (YHOO)
Buckeye Delta Fund Is Short (NOK)



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