Short-Term Options Traders Swarm BlackBerry After Latest Licensing Deal

Analysts are still mostly bearish on BlackBerry

Managing Editor
Mar 8, 2018 at 2:26 PM
facebook X logo linkedin

BlackBerry Ltd (NYSE:BB) stock is up 3.1% to trade at $12.89, after the company announced a licensing deal with Punkt Tronics AG. The deal is part of the company's BlackBerry Secure licensing program which lets companies use its cybersecurity technology. Meanwhile, BB call buyers have turned out in droves today.

More than 48,000 calls have traded so far -- six times what's typically seen at this point, with volume pacing in the 98th annual percentile. Leading the pack are the weekly 3/9 12.50- and 13-strike calls. Data suggests traders are buying to open the options, betting on extended upside from the stock through expiration at tomorrow's close. New positions are being opened at the same strikes in the traditional March series, as well.

This penchant for call buying is nothing new. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows long calls more than quadrupling puts in the past 10 days.

BlackBerry stock has now added an impressive 90% year-over-year, reaching a five-year high of $14.55 on Jan. 16. While the shares pulled back after hitting this milestone, they found support at the 80-day moving average and are on pace for a fifth straight win.

Despite the stock's solid start to the year, analysts remain unconvinced. Of the nine brokerages covering BB stock, eight rate it a "hold" or "sell." Furthermore, the security's average 12-month price-target sits at $11.46 -- below its current perch. This indicates a round of upgrades and/or price-target hikes could come through and drive the equity higher.


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