Could This BlackBerry Ltd (BBRY) Report Spook Bears?

Talk of a BlackBerry Ltd (NASDAQ:BBRY) partnership with Google Inc (NASDAQ:GOOGL) is heating up

by Alex Eppstein

Published on Jul 9, 2015 at 1:50 PM

According to DigiTimes, BlackBerry Ltd (NASDAQ:BBRY) may be rolling out smartphones later this year that run on Google Inc's (NASDAQ:GOOGL) Android operating system. This report follows on Tuesday's news that BBRY purchased the AndroidSecured.com and AndroidSecured.net domains -- and plenty of earlier rumors.

As such, the shares are 1.8% higher this afternoon at $7.83 -- bad news for recent options traders. During the last two weeks across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BBRY has racked up a put/call volume ratio of 0.46 -- which outstrips nearly four-fifths of comparable readings from the past year.

The Street's negativity doesn't stop there. A lofty 18.6% of the stock's float is sold short, which represents nearly 14 days' worth of pent-up buying power, at typical volumes. Also, 18 of 21 analysts tracking the shares have labeled them a "hold" or worse. Should BlackBerry Ltd (NASDAQ:BBRY) extend today's gains, it could force these "Negative Nancies" to the exits -- potentially leading to more upside.

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