RIMM was flat after big run AH

RIMM was up big after hours last night.....Around $17.00. RIMM opened today at $102.20 and closed today at $102.65. This was with a volume of 34.4 million shares (the average is 4.45 million). This is a tricky time to trade because buyers and sellers were at parity with alot of volume. I think momentum will not be there on Monday. I spoke about following a straddle/strangle play. The premiums were too rich for my blood. Implied volatilty is still remaining in both the puts and the calls.

Let's follow the options:

Oct 105 call: Premium: $2.75 Delta: .4297 Theta: -.0342 Vega: .0362 Gamma: .0145
Oct 110 call: Premium: $1.20 Delta: .2379 Theta: -.0694 Vega: .0762 Gamma: .0435
Oct 115 call: Premium: $.50 Delta: .1161 Theta: -.0443 Vega: .0481 Gamma: .0213

Oct 100 put: Premium: $2.30 Delta: -.3552 Theta: -.0758 Vega: .0917 Gamma: .0405
Oct 95 put: Premium: $.95 Delta: -.1804 Theta: -.0568 Vega: .0647 Gamma: .0276
Oct 90 put: Premium $.35 Delta: -.0787 Theta: -.0342 Vega: .0362 Gamma: .0145

Nov 105 call: Premium: $4.60 Delta: .4787 Theta: -.0608 Vega: .0299 Gamma: .0158
Nov 110 call: Premium:$2.75 Delta: .3375 Theta: -.0537 Vega: .1374 Gamma: .0278
Nov115 call: Premium: $1.60 Delta: .2216 Theta: -.0430 Vega: .1118 Gamma: .0226

Nov 100 put: Premium: $3.95 Delta: -.3769 Theta: -.0478 Vega: .1428 Gamma: .0272
Nov 95 put: Premium: $2.20 Delta: -.246 Theta: -.0411 Vega: .1185 Gamma: .0224
Nov 90 put: Premium: $1.20 Delta: -.1484 Theta: -.0322 Vega: .0871 Gamma: .0158

We will watch as implied volatility drops out of the contracts. Watching this as well as other contracts, is going to give you a good idea of how to observe option contracts.


Good luck investors