RIMM lowered guidance unexpectedly

It’s not an earning day. 

Big volume and OI on 55 put option that expires tomorrow. Super vision. 2K contact 0.07 each will worth $5 each tomorrow.  70 folds. 

Two call options combos’ difference when facing strong resistance ahead: 134~135

Combo 1: +2, June 17 132 call; –1, April 15 133 call. Combined delta = 0.9844-0.2333 = 0.7511, cost 6.84 – 0.26 = 6.58

Combo 2: +2, June 126 call; –1, April 15, 132 call.  Combined delta = 0.7132 * 2 – 0.4139 = 1.01, cost 7.60*2-0.65 = 14.55

Purely Theta effect? Over the weekend (2 days), price of all OTM put options dropped.

 

127 Put from 0.16 to 0.14 to 0.07

128 Put from 0.21 to 0.16 to 0.10

131 Put from 0.55 to 0.44 to 0.30

Use calendar to close DT position

April 6, entered (virtual, 1 hour diff due to DT setup) calendar spread for 4.64-3.33 = 1.31, closed on April 7 (in high volatility)  for 4.90-3.65=1.25, $loss 6 plus comm = $10 loss