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| Delta Interval Research Note |
CYCLES RESEARCH |
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1 - Research In Motion Ltd. (RIMM) Cycles Report
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- cycle length duration: 117 days,
- cycle amount of dollar change: $78.00,
- security has reached an all-time record price level,
- pointing to the cycle end: look for above avg. daily trading range.
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| 2 - Price Behavior Graph |
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3 - Options Trade
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The recent increase of $78 dollars represents a 123% rise of RIMM stock price since the positive cycle started on August 02.
When the stock price is within 139-141 range, we buy one contract of Jan-07 RIMM 140 options straddle (note: trade Jan).
This means we are indifferent to the direction of the stocks move, even though there is
a high chance of a correction downward. We monitor our directional risk by delta and our time
exposure risk by theta. The market fluctuates enabling us to achieve a target return of
+5-10% per trade within a monthly period. (learn more) |
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About Delta Interval
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