Inside the Big Bearish Bet on BlackBerry Limited (BBRY)

BlackBerry Ltd (NASDAQ:BBRY) puts are trading at an accelerated clip this afternoon

Jun 10, 2015 at 3:28 PM
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BlackBerry Ltd (NASDAQ:BBRY) puts have been popular in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the handset maker has racked up a 50-day put/call volume ratio of 0.47 -- in the 83rd annual percentile.

BBRY puts are trading at an accelerated rate today, too, with 10,000 contracts on the tape. In fact, it looks like one trader rolled his bearish bet down and out, selling to close a 2,000-contract block of June 12 puts, and simultaneously buying to open a lot of 3,000 July 10 puts.

Not all of the intraday action is bearish, however, In fact, BBRY's most active option is the weekly 6/26 11.50-strike call, which traders are buying to open in hopes the stock will take out $11.50 by the close on Friday, June 26, when the series expires.

Elsewhere, short interest on BBRY is elevated. Nearly 18% of the stock's float is sold short, representing more than 13 days' worth of pent-up buying demand, at average daily trading levels.

This could translate into a catalyst for future gains -- by way of a short-covering rally -- should BlackBerry Ltd (NASDAQ:BBRY) resume its longer-term uptrend. Year-over-year, the shares have advanced over 20% to trade at $9.38, but are off 1.7% today.
 

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