Thursday, May 26, 2011

Research In Motion (RIMM) Update

Back on April 14th I blogged about the short signal I got for Research In Motion at $54.78. Normally, in the interest of full disclosure and context, I'd break down all of the trades I've made starting in 2003 (you can see them here), but for once let's just take a quick look at the current trade:

- SHORT the week of 4.4.11 at $54.78 with an initial stop of $67.68. Our risk (R) for the trade calculates to $12.90/share. Last Friday the stock closed at $43.52, so our gain after a little less than 2 months is 20.6%, and the reward-to-risk ratio is pretty healthy at $11.26/$12.90 = 0.87.

Bottom Line:
Winning Trades: 4 | 28.6% | $39.41/share avg.
Losing Trades: 10 | 71.4% | -$7.06/share avg.
Average Trade: Gain of 53.4% | $6.22/share | Reward-to-Risk Ratio (R): 2.13


  1. what is your position risk per trade? 1, 2, .5%? etc.

  2. Most of the time I use a 1% model for position sizing, but on this one I actually scaled down to .05% to give the trade a portfolio weight of 2.2%.