Yong-Long Lai

Decided to dump my last bit of money into RIMM again, its yielding 3% return with a 10% break-even point for only 7 days of trades (5 days not including the weekend) – The bad news for RIMM was released last week so chances of another 10% drop in the last 5 trading days are very slim and its just great to pick up 3% return in 5 trading days! For those that don’t know, RIMM make blackberries, so if you have a blackberry & you like it then you should consider buying this stock. I know a lot of the employee from analysts to CEOs etc. in large organisation got one of these little babies! I only see those organisation buying more and more. Obviously with the ‘potential’ slow down in the economy (part of the bad news) we may see sales fall. Its usually the first things people do when times are bad… cut all the unnecessary! (consumables – stuff retail shop sells, entertainment, widgets, gadgets etc.)

PS: Listen closely to news on credit crunch, its a crazy time out there! billions of dollars are being written off and billions of dollars are being pumped back into the money supply by central banks and other banks in the world to increase ‘liquidity’ in the market. i.e. make sure there is enough money for banks & other financial institution to hold their minimum capital and operate their business (fund lending etc)… Just remember everybody, end of the day the consumer/public always pays!

The Trade – 14/12/2007
RIMM
Options/Contract = 100
Buy 100 RIMM @ $107.05
Sell 1 RIMM $100.00 Call @ $10.10
Time Value: $3.05
Intrinsic Value: $7.05

Breakeven Point: $96.95
Assigned Return: 3.05% ($3.05/$100.00)
Unassigned Return: 10.1% ($10.10/$100.00)