Research in Motion (RIMM) has caught some momentum with the recent introduction of new phones (to its huge base of 70 million users), brokerage firm upgrades, and news that legendary investor Leon Cooperman has started a position in the company. The stock has moved from around $17.50 to $19.50 since last Thursday, and the excitement building around the stock has it on the verge of breaking out above its recent trading range of $17.50–$19.80. Even with the recent bounce, RIMM is still very cheap at just a little over 4X expected 2012 earnings, which should be above $4.70 a share.

Buy to open RIMM January $19 calls at $3.15 or under. A move to last month’s highs around $24 should bring us returns of at least 60% on the calls.