Market Woes Bring Out BlackBerry Ltd (BBRY) Bears

Weekly put buyers hope BlackBerry Ltd (BBRY) gives up more ground by tomorrow's close

Jan 7, 2016 at 11:15 AM
facebook X logo linkedin

BlackBerry Ltd (NASDAQ:BBRY) is getting swept up in the broad-market pessimism, down about 2.7% at $8.50. Accordingly, put volume has spiked to double what's expected at this point in the day -- with nearly 8,000 contracts on the tape.

Digging deeper, BBRY's most active option is the weekly 1/8 8.50-strike put, with buy-to-open activity detected. The volume-weighted average price (VWAP) on the now at-the-money strike is $0.15, meaning the buyers anticipate the stock will slide south of $8.35 breakeven (strike less VWAP) by tomorrow's close, when the weekly series expires.

Taking a step back, option traders have been much more bullishly inclined in the past two weeks. BBRY's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 10.83, with nearly 11 calls bought to open for each put in the past 10 sessions. What's more, this ratio ranks just 2 percentage points from a 12-month peak.

Not everyone's a BBRY fan, though. For instance, at the stock's average daily volume, it would take over two weeks to buy back the roughly 78 million shorted shares. On top of that, 14 of 17 covering analysts have handed out a "hold" or worse recommendation.

Technically speaking, BlackBerry Ltd (NASDAQ:BBRY) has been on a hot streak since bottoming out in late September, today notwithstanding. Specifically, the shares have advanced over 41%, ushered higher by their 30- and 80-day moving averages. If the stock can bounce from the former trendline and resume its longer-term uptrend, an unwinding of negativity could lead to 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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI