FullyInformed.com - Updates and Comments

I believe people spend more time investigating what car to buy than taking care of their personal finances. 35 years ago I decided to learn how to manage, invest and grow my savings. I decided to become fully informed. I built this site to share my strategies and investments. To understand my strategies Continue Reading >>

Stock investment should be more than just following the latest trend and I doubt Research In Motion stock is a stock investment worthy of consideration. But I realize from all the emails I have received, that a lot of investors believe it is a great time to get into Research In Motion stock when it is so low. Research In Motion later today will release their earnings and Research In Motion stock could take a tumble or run up or do nothing. I have had a lot of emails today wondering what I would do. Personally I don’t like Research in Motion as a stock investment or even an options play. I did the 10-20-30 moving average strategy for quite a long time on Research in Motion Stock and you can follow those trades here.

Research In Motion Stock 10-20-30 moving average trades for 2011

Research In Motion Stock 10-20-30 moving average trades for 2010

Research In Motion Stock 10-20-30 moving average trades for 2009

I stopped the 10-20-30 moving average trades for Research In Motion stock in 2011 after the stock began to collapse. In hindsight I should have just bought puts and held on. That would have been probably the best trade of a lifetime aside from puts on AIG Stock in 2007 before it collapsed. Hindsight is wonderful isn’t it.

Research In Motion Stock Strangle Option

For those investors who have written me I can only say the best option trade I can think of is a strangle option strategy on Research In Motion stock. It is cheap to put in place and could reward those who are gamblers. Myself, I don’t gamble so I won’t be doing this trade. Anyway here is what I would consider if I was a gambler.

With Research In Motion Stock trading on New York at roughly $9.00 I would consider the June 29 options expiry and buy the $8.00 put for .14 cents and the $10.00 call for .14 cents.

Total cost is next to nothing and any big swing either way would easily net a reasonable return which I would think would cover the cost of either the calls or the puts.

Stock Investment - Research In Motion Stock

Research In Motion Stock is not a stock investment for any portfolio in my opinion. Above are the options for June 29 to put in place a strangle option strategy.

Research In Motion Stock Strangle Option Summary

That’s it. That’s all I can offer. I see no reason to get excited about this stock. Sometimes the simplest trade is the best and putting in place a strangle option strategy at such cheap option premiums may be the ticket.

As to those who wrote me wondering about buying Research In Motion Stock as a stock investment and writing deep in the money calls, I would not touch the stock period, end of story.

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Disclaimer: There are risks involved in all investment strategies and investors can and do lose money. Trade at your own risk.

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