Research in Motion Ltd. (NASDAQ: RIMM), the tech company most well-known for building the BlackBerry, is set to report quarterly earnings tomorrow after the close. Analysts expect RIMM to bank $1.00 per share in the period, 13 cents better than year-ago results.
In the past two reporting periods, RIMM has managed to surprise to the upside.
During the past few weeks as earnings approach, RIMM has seen action among call buyers, who are effectively driving up implied volatility. In the past month, at-the-money implied (or expected) readings have jumped from 41% to about 59%. The implied levels are looking fairly pricey here, especially when compared to historical readings.
While call buying has been the trend, call selling was in focus Tuesday, as investors sold to open the November 105 and 120 calls, perhaps to protect existing long stock positions.
Looking at the stock chart, it appears - at least from a technical perspective - as though RIMM could be poised to break higher, as it has overtaken the 80 level and is closing in on the technically significant 86 mark. Watch out for this name Thusday night!
Beth works for The Options News Network (www.ONN.tv), which provides daily stock and options commentary. The above comments are not intended as trading advice.
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