When Research In Motion (NASDAQ: RIMM) hit the scene a few years ago, not that many people were interested in accessing work and personal email on the go from a handheld device. But, the company changed the paradigm of wireless email by allowing customers to be instantly notified of incoming email messages regardless of where they were: on the subway, on vacation (ehh), or even in a meeting.

Since then, companies have realized that when it comes to wireless communications, one of the killer apps (if not the killer app) may not be voice calls, but email wireless access without the need to lug a laptop everywhere. RIM has thus captured the hearts and minds of millions of customers with its BlackBerry products (often called "CrackBerry" since they cause portable email addiction). It has released a multitude of cellphone/email handsets for every major U.S. wireless carrier recently, and has even shifted away from just business customers to consumer-targeted devices with cameras and MP3 playing capability onboard. What can RIM do for a second act? Try to sell products directly to consumers instead of relying entirely on wireless company sales?

RIM has recently partnered with U.S. cellphone retail outlet Wireless Giant to open a small store in a Detroit suburb in what could be the start to what Apple Inc. (NASDAQ: AAPL) has done, and done well: sell products directly from retail stores. However, signaling to wireless companies that you're willing to bypass them and sell directly to consumers can sometimes inflame executive egos. Wireless carriers depend on those long-term contracts to actually make money, you see. But, in this case, RIM will be selling its phones -- many models, to be exact -- to work with networks such as AT&T, Sprint, T-Mobile and Verizon Wireless. That ought to cause any apprehension to disperse from the wireless telecom companies. At least, for now.

Research in Motion (NASDAQ: RIMM) closed at $104.30 Thursday.

RIMM will report Q3 EPS on December 20, 2007. Smith Barney says: "RIMM continues to be our top North American handset pick." International CES will be held January 7-10 in Las Vegas. RIMM December 103 straddle is priced at $12.35. RIMM January option implied volatility of 78 is above its 26-week average of 53 according to Track Data, suggesting larger risk.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Research-in-Motion (NASDAQ: RIMM) has been a beast of a tech stock. But shares have run up so much and the valuations have risen so much that the stock NEEDS a breather. Shares are down roughly 3% at $95.50 today, after reaching over $100+ highs last week. Currently, RIM has a market cap north of $50 billion, its trailing P/E ratio is over 70, and it trades at roughly 42 times Feb-2008 fiscal earnings.

Just yesterday RIM received a downgrade from RBC Capital Markets' Mike Abramsky saying the current valuations and recent monster performance will make it hard for the stock to continue rising from here. His downgrade was from TOP PICK down to Outperform, which still isn't exactly a death sentence. Shares were down over 1% yesterday early on, but managed to close up $0.11 at $98.66 in such a strong market.

On Friday I noted how Research in Motion was one of the ten or so major "Windows Dressing" beneficiaries where fund managers and investment advisors want to show the stock in their holdings at the end of a quarter. These performed unbelievably well and RIM along with them, showing a 50% quarterly gain, to the point you'd never know we were all worried in August.