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RIM Call Options Ablaze With Speculation As Stock Rallies On Takeover Talk

Investors purchased roughly 850 calls at the Dec. 11 $19 strike for an average premium of $0.53 each, and snapped up nearly 700 of the Dec. '11 $20 strike calls at an average premium of $0.39 apiece. Call buyers at these strikes may profit at expiration next week in the event that shares in Research in Motion surge 6.7% and 11.4% over the current price of $18.30 to surpass the average breakeven prices of $19.53 and $20.39, respectively.

 

RIM Still A Slave To Blackberry But Playbook Picks Up The Pace

Research in Motion announced last week that cost cutting efforts will include layoffs following a sluggish start to the year and continued new product delays. Shares sold off sharply as investors bailed on lowered guidance and delayed new Blackberry launch.

 

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