Research In Motion (RIMM) is reeling after posting better-than-expected first quarter EPS numbers, but revenues that fell short of Street estimates. The company also slashed its outlook for the second quarter and the full year. It was the subject of multiple broker downgrades this morning. As a result, RIMM is down $6.96 to $28.39 and falling to levels last seen in the fall of 2006. Options are heavily traded in the early going. 99,000 calls and 22,000 puts so far. The top trade is a Jan 30 – 35 put spread sold at $3.05, 29000X and probably rolls a position down in strikes now that the 35s are deep ITM. Implied vols are down 22 percent to 50.
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