BlackBerry Limited (BBRY) Traders Bite on Apple Rumors

There's speculation Apple Inc. (NASDAQ:AAPL) may attempt to buy BlackBerry Ltd (NASDAQ:BBRY)

May 13, 2015 at 2:34 PM
facebook twitter linkedin


M&A rumors are once again surrounding BlackBerry Ltd (NASDAQ:BBRY), and the possible takeover candidate is none other than Apple Inc. (NASDAQ:AAPL). The speculation has call volume at twice the expected intraday level in BBRY's options pits, as the May 10.50 strike is seeing heavy action. Over 14,00 contracts have crossed here -- twice that of the next closest option -- and it looks like buy-to-open activity has taken place. In other words, traders are betting on BBRY to topple $10.50 by Friday's close, when the options expire.

If the equity -- currently at $10.20 -- can get past recent congestion in the $10.50 area and extend its 39% year-over-year lead, there's potential for an unwinding of pessimism to boost the shares. For starters, almost 17% of BBRY's float is sold short, representing nearly 11 sessions of trading, at normal daily volumes.

And then there are analysts. Of the 19 brokerage firms covering the stock, 16 say it's a "hold" or worse. In other words, there's a chance BlackBerry Ltd (NASDAQ:BBRY) could benefit from a short-squeeze situation and/or analyst upgrades. In fact, this may already be happening. During the most recent reporting period, short interest on BBRY fell 11.8%.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners