”At 25 I think Research in Motion stock is in no man’s land,” says Fast trader Guy Adami. “There’s a chance it goes lower but I’d be careful playing the stock either long or short. If you were fortunate enough to have a short position on – take it off – and it’s too early to start buying.”
That was Fast Money trader Guy Adami’s immediate reaction – after shares of RIM plunged as much as 18% in extended trade. Investors ran for the exits after the latest earnings report from RIM showed the company continues to struggle in their efforts to compete with the iPhone and smartphones that use Google's Android system.
If you’re looking to take a flier, Pete Najarian suggests the path of least resistance is probably lower, still. He says options investors were betting on moves as big as 30% and in the aftermarket the stock only slipped less than 20%. “There could be more selling to come,” he says. "”The options were looking for a 20-30 percent move – perhaps we’ll see more on Friday.
JJ Kinahan feels the same. "I would play it to go under $20 without a problem," he says.
There is a smidge of good news – but that’s only if you’re an Apple shareholder. The iPad maker doesn’t have to worry about RIM biting at their heels in the tablet market. RIM sold about 200,000 PlayBook tablet computers in the quarter - far short of the 500,000 analysts had expected.