BlackBerry Limited (BBRY) Dip Draws Bearish Attention

Options traders and analysts are both skeptical of BlackBerry Ltd (BBRY)

May 5, 2015 at 1:56 PM
facebook X logo linkedin


BlackBerry Ltd (NASDAQ:BBRY) puts have been the options of choice for a while now. The stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio is 0.51, which ranks in the bearishly skewed 97th percentile of its annual range.

There's plenty more skepticism where that came from. In fact, among the 19 analysts tracking BBRY, 16 rate it a "hold" or worse. Also, nearly one-fifth of the security's float is sold short, which represents more than seven sessions' worth of pent-up buying demand, at the stock's average daily trading volume.

Pessimism is prevailing today, as well. Roughly 11,000 puts are on the tape -- a 70% mark-up to the average intraday amount, and outdistancing calls by a 4,000-contract margin. Most active is the in-the-money June 12 put, where it seems traders are purchasing new positions. By scooping up these puts at a volume-weighted average price (VWAP) of $2.01, the buyers foresee BBRY settling below $9.99 (strike less VWAP) at the close on Friday, June 19, when the back-month options expire.

BlackBerry Ltd (NASDAQ:BBRY) is currently sitting south of that breakeven point, off 2.4% at $9.91 amid broad-market headwinds. However, the stock remains a long-term outperformer, adding 29% year-over-year. If BBRY bounces from its underfoot 10-week moving average -- located at $9.85 -- an unwinding of the aforementioned pessimism could result in tailwinds.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI