Earlier this week and earlier today I had occasion to take a look at technology firm Research in Motion Limited . This afternoon the stock has shot 3.5% higher and is challenging the 100 level. However, let's not forget that this is far and away the site of peak call open interest in the front 3-month option series for RIMM. Now, positive results could touch off a run higher, which could help the stock break through the 100 level. Should this move happen, would it be once and for all?
Well, peak put open interest in the October option series is at the 90 level. In November, the 100 level does gain a bit of ground on peak, which is at 95. Nevertheless, we could see the 100 level act as support since it is a round-number level and is psychologically significant. The nice thing about these put strikes being out-of-the-money is that the potential downfall to an earnings disappointment could be contained by these strikes.