Research In Motion Limited (RIMM) sees a large 3-way Put spread traded this morning and it looks like it carries a Bearish sentiment. An investor sells the January 17.5-27.5 Put spread on a ratio of 17K by 21k times at $4.10 and purchases 37k January 24 Puts at $3.45. The Put spread was originally purchase at $3.14 back on June 21st so the spread initiator saw a nice profit but decides to use the proceeds to open another Bearish position in the same expiry. This new Put position will need the shares to drop another 16% from their current price by January expiration to show any profits.

RIMM’s shares have lost more than 56% of their value over the last year as the company continues to lose market share to Apple in the smartphone war. The company recently unveiled 5 new Blackberry models in hopes of keeping up with their competitors. The stock set a new 52 week low of $24.10 yesterday and today’s option activity suggests at least one investor believes this slide in stock price will continue during the remainder of 2011. Read More