To Be or Not To Be

Hi everyone Anna Here!

Good Sunday Night Fellow Bear, below I have a special treat for you, this is all of us asking/begging for a piece of the tape! We have been starved for so long. As you can see, we are friendly and just want a piece of the pie for us.

As of now the Wave count is the same as it has been, we ended up on Thursday and Friday basically going nowhere, so here is the Wave Count still in Play. This week should be make or break time. But as I have said quite a bit lately, any nice dip expect the bullshitos to dive in and run the tape right back. I have a target of 1123 then 1238 before end of year. Next year is personally when I expect a signifcant change in tape trend. Or  as we the bears have been begging for a piece of! 🙂

http://www.youtube.com/watch?v=MYUF_QwYxts#watch-main-area

Now RIMM has earnings coming out on Friday after the bell. I decided to do two different spreads, one bullish and one bearish, I will decide which one for me after I see the price action on Monday, but most likely will do the bearish one! 🙂

Historically RIMM moves an average of about 8%-10% (most of the time) on earnings, so it is one of my favorite spreads to trade. That is why I am going further OTM for this trade.  I am keeping it simple with two, one call spread on put spread. Take your pleasure. 🙂 The IV is not terrible, but it will rise this week as the 24th approaches, so by doing a spread you in essence neutralize the IV and don’t get crushed after earnings come out. I prefer debit spreads over credit, but they are in essence the same thing, you are just buying with a debit, and selling for a credit. The first one is a debit of 1.21 and you have the possibility of making 3.79 or about 233%. That is if you held it to Oct OPX, but I take it off when I double my money. How many trades do you double your money on in a couple of days, if you compound that yearly, your eyes would pop out. 🙂

The next one is a bearish spread and I will go out about the same OTM amount on Strikes. As you can see the call spread has a better R to R, but you have to decide which one is more likely to work.

Okay you guys, look like so far the $DXY is getting a bounce, so we may have some retracement on the futures tonight. Good night and see you tomorrow!! 🙂

UPDATE  I did the bullish RIMM trade 🙂