Thursday, September 28, 2006

RIMM up way up after hours

Research in Motion (RIMM) reported earnings of $.74 on revenues of $658.5 million. The analyst of Thomson First Call expected earnings of $.71 on revenues of $644 million. Without option expenses RIMM posted an EPS of $.77.

RIMM shares rose $17.09 to $103.15 in after hours trading.

RIMM may have to restate earnings due to options expensing. I would stay clear of this stock for a couple of days and see how things shake out with the options. This may be a good time to play a strangle or a straddle option play with the restatement looming. You have to watch out for implied volatility. If it is low, I will observe a play and we will post results.

Good luck investors

Disclosure: I have no position in RIMM at this time.

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