Research In Motion (RIMM, $132.14, up $4.89) is having another huge day after touching a low of $116 on Monday. The move can be attributed to a positive note out of Citigroup saying the company is poised for a strong second half of the year with the introduction of the BlackBerry Bold.
On July 31 I mentioned the company’s other products, the Kickstart and the Thunder, will also be hitting the market. These catalysts have propelled the stock higher in the short-term and that was all were we looking for. I profiled the September 140 calls (RULIH, $5.00, up $1.45) at $1.85 and they are up another 40% today. Some of you were stopped out with only an 8% gain but other traders may have stayed in.
The calls are now up 150% from entry levels and with the weekend coming up it would be wise to maybe sell half of the position and set a stop on the other half. There will be a small loss of time premium but that would be offset if RIMM continues higher next week. As far as resistance, the stock is facing headwinds at $140 and it would be a stretch for RIMM to barrel through that and go on to test its 52-week high of $148.