BlackBerry Ltd (BBRY) Bear Gets Spooked Ahead of Earnings

One BlackBerry Ltd trader rolled her bearish bet out

by Karee Venema

Published on Dec 18, 2014 at 1:53 PM
Updated on Apr 20, 2015 at 5:32 PM

BlackBerry Ltd (NASDAQ:BBRY) is slated to take its turn on the earnings stage ahead of tomorrow's open. Although the equity has averaged a single-session post-earnings gain of 5.7% over the last four quarters, put volume in today's session has soared to nine times what's typically seen at this point in the day.

Drilling down, a hefty portion of the day's activity has centered at the December and February 10 puts. Specifically, two symmetrical blocks of 22,016 simultaneously changed hands earlier, and it appears the front-month contracts -- which expire at tomorrow's close -- were sold to close, while the February-dated contracts were bought to open. In other words, it seems this option trader rolled her bearish bet out, hoping BBRY's momentum slows in the new year.

It's been quite a 2014 for BlackBerry Ltd (NASDAQ:BBRY), though, with the shares up 35% to trade at $10.07. More recently, the stock has found a steady layer of support from its 200-day moving average, and since taking a sharp bounce off this trendline on Tuesday, BBRY has already added 9.3%. The security is continuing its upward trajectory today -- adding 0.9%, following a well-received debut of its BlackBerry Classic device.

Daily Chart of BBRY Since January 2014 With 200-Day Moving Average

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