Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

BlackBerry Ltd (BBRY) Call Sellers See Limited Growth Ahead

Option traders doubt BlackBerry Ltd will return to double-digit territory soon

by 4/23/2014 9:47 AM
Stocks quoted in this article:

Option Brief: BlackBerry Ltd (NASDAQ:BBRY) call volume outpaced put volume by a roughly tenfold margin yesterday -- 18,000 contracts to 1,788. However, not all of the call activity was of the typical bullish variety. In fact, the data surrounding BBRY's most active strike suggests neutral-to-bearish positions were initiated on the mobile phone maker.

Specifically, 4,233 contracts -- including a block of 2,175 --crossed the tape at the July 10 call, more than doubling the volume at BBRY's second most active option. All of the trades occurred at the bid price, and open interest tacked on nearly 3,900 positions overnight, making it safe to assume the contracts were sold to open.

Long story short, the call writers expect BBRY to churn below the $10 strike through July options expiration, rendering the contracts worthless and allowing the traders to retain the initial premium collected as profit. However, if the stock rallies into double-digit territory, the sellers risk being assigned, and having to sell the shares for $10 apiece, no matter how much they're worth.

On the charts, BlackBerry Ltd (NASDAQ:BBRY) gained 1.5% yesterday to finish at $7.29. The stock is fresh off a successful test of support at the $7, and has tacked on 34% since hitting a decade-plus low of $5.44 in December.


Featured Brokers
Unusual Option Volume
Option Flow
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2015 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email:

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by | Data delayed 15-20 minutes unless otherwise indicated.