Welcome to Monday

It only took one downgrade from a relatively lesser-known company, Morgan Keegan, for RIMM to show it’s relatively overbought position and have a nice drop this morning (from 5% down to 7% down).  At this point there was another firm that was forced to come out.

BMO (who?) raised the RIMM target to $140 from $120.  Perhaps they didn’t notice that Morgan Keegan lowered RIMM to Market Perform from Outperform.  At this point there are probably so many funds in RIMM that allowing a downgrade without an upgrade elsewhere is just not going to happen.

Predicting a “bottom” to RIMM is going to be pretty difficult, so far nobody I’ve heard from has gotten it right.  Who knows if this is going to be when RIMM stops it’s upward climb.  I don’t know.  I decided that I would take advantage of the last two days of dropping though, so I sold my put.

Sold:
SHLD Mar08 $120 put (RULMD), 1 @ $19.80
  Entered 11/29 @ $10.85, exited 12/03 @ $19.80
  82% profit, $893.00
  stock price when entered $121.60
  stock price when exited $106.32

As for BIDU that I’m still holding, I’m losing some confidence that it will ever go down.  When the market is negative, BIDU is up.  When the market is positive, BIDU is up.  Unless there’s some major event, I don’t see any profit coming from my BIDU put.

I’ve decided that for this competition, I’ll be playing mostly safe plays (ITM: in-the-money) and will be playing higher momentum stocks.  This should allow me to see profits quicker and hopefully catch up to Lindsey and her future-foretelling powers.

Watch for the IWM to drop below $76.00, because if it doesn’t then I will be bailing out with whatever loss I have.  This wasn’t a high probability play, but actually was more of a guess that didn’t quite happen.

SHLD is doing pretty well, it made me a small profit. Due to the small amount of money I put on the calls, the profit of $86 does not look impressive, but having a profit percentage of 39.13% is more than acceptable.

Sold:
SHLD Mar08 $150 call (KTQCU), 2 @ $1.60
  Entered 11/29 @ $1.15, exited 12/03 @ $1.60
  39% profit, $86.00
  stock price when entered $99.95
  stock price when exited $109.99

Today is a lot of sideways action so I’m probably going to just do a lot more watching than taking action.  I do like the potential for FSLR and ISRG though.