Schaeffer's Top Stock Picks for '25

Earnings Preview: BlackBerry Ltd (BBRY)

BlackBerry Ltd (NASDAQ:BBRY) option traders are taking sides ahead of earnings

Mar 31, 2016 at 10:57 AM
facebook X logo linkedin


After its earnings release in December, BlackBerry Ltd (NASDAQ:BBRY) shot 10.4% higher in the following session. The options market is anticipating a similar one-day move of 11.1% ahead of the company's earnings release tomorrow morning. What's more, BBRY option traders have initiated more than five long call options for every long put during the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), pointing to bullish expectations for the stock. 

Among the BBRY options that have added the most open interest during the past two weeks is the May 9 call. According to the ISE, CBOE, and PHLX, traders have opened long positions, betting on the stock to top $9 before back-month expiration at the close on Friday, May 20. 

In today's trading, many speculators are targeting puts, with volume at 1.2 times the average intraday pace. The most popular put is the April 7 strike, which traders may be buying to open, betting on the stock to drop below $7 before front-month options expire at the close on Friday, April 15. 

Elsewhere, BBRY has been a long-time favorite of short sellers. Over 14% of the stock's float is currently sold short, and it'd take these bears almost three weeks to cover, at average daily volumes. In fact, it's possible some of the recent call buyers -- especially those targeting out-of-the-money strikes -- are short sellers seeking protection ahead of earnings.

On the charts, BlackBerry Ltd (NASDAQ:BBRY) has bounced back some since its year-to-date low of $6.33 on Jan. 20, but is still down 12.6% in 2016. Today, the shares have managed a 1.2% gain to trade at $8.11. 
 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?