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Option Brief: BlackBerry Ltd (NASDAQ:BBRY) is down 1.5% today to trade at $6.31, despite attempts to win its corporate customers over with the latest update to the BlackBerry Enterprise Server. Elsewhere, option traders are focusing on BBRY's front-month options, particularly the December 6 put.
So far, about 7,400 contracts have changed hands at this strike -- 91% of which did so at the ask price, pointing to buyer-driven volume. What's more, implied volatility has increased 7.8 percentage points, suggesting long put positions have been opened here. Data from the International Securities Exchange (ISE) also confirms the presence of some buy-to-open activity at this strike.
By purchasing these options, today's bearish bettors expect BBRY to slide beneath $6 by the close on Dec. 20, when the puts expire. Over the past year, the equity has breached this level just once on an intraday basis, and has not closed south of the mark since September 2003. However, there is still hope for the put players, as BlackBerry Ltd (NASDAQ:BBRY) has been on a downward spiral over the past three months, falling more than 38%.