Research In Motion (RIMM, $122.82, up $3.60) was just what the doctor ordered. The stock opened Thursday’s trading session at $119.69 and the September 140 calls (RULIH, $2.75, up $0.90) opened at $1.85. The opening allowed us to get in the calls immediately as we had a limit order to buy them up to $2.00-$2.10.

RIMM was strong all day despite a nasty day for the market. The Dow has a miserable day, falling 200 points to close at 11,378. RIMM’s strength could be contributed to the Nasdaq which posted only a four point loss and finished at 2,325.

Another contributing factor was the surprise earnings report out of Motorola (MOT, $8.64, up $0.96). The company posted a profit of $4 million in income which amounted to break-even on a per-share basis. The Street had expected the company to report a loss of $66 million, or $0.03 a share.

Friday will be a HUGE day for the market as the unemployment numbers roll in before the market opens. If we can get a decent report, the RIMM call options and the other call positions we have should continue to do well. The RIMM trade is already up 50% and we can go ahead and set an early stop of $2.00 which gives us at least an 8% profit should the stock retreat.

Rick Rouse
Rick@OptionsMentoring.com