Are BlackBerry Limited (BBRY) Shorts Feeling the Heat?

BlackBerry Ltd (BBRY) calls are crossing at twice the average intraday clip

by Andrea Kramer

Published on Mar 2, 2015 at 10:47 AM
Updated on Apr 20, 2015 at 5:32 PM

BlackBerry Ltd (NASDAQ:BBRY) is set to notch its second close north of $11 in 2015, with the shares up 2.3% at $11.06. What's more, options traders are rolling the dice on even more upside for BBRY this week, with calls crossing the tape at twice the average intraday rate.

The security's 30-day at-the-money implied volatility has edged 2.6% higher to 61.9%, hinting at a growing demand for short-term contracts. Indeed, the most active option is the weekly 3/6 11-strike call, which traders are buying to open amid hopes for BBRY to extend its run north of $11 through Friday's close, when the options expire.

Outside of the options arena, short sellers could be feeling the heat. Despite declining by 7.6% during the most recent reporting period, these bearish bets still account for 18.7% of BBRY's total available float. In fact, it would take nearly 12 sessions to repurchase these pessimistic positions, at BBRY's average pace of trading.

On the charts, BlackBerry Ltd (NASDAQ:BBRY) is now positive on a year-to-date basis. From a longer-term perspective, the security has advanced more than 6.5% over the past year, with recent pullbacks contained by its 200-day moving average. Off the charts, traders are celebrating the company's move to take its BES12 service to the cloud.

Daily Chart of BBRY since March 2014 with 200-Day Moving Average

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