Unusual Options Activity: BlackBerry (BB)

Shares of wireless communications company BlackBerry (BB) have been trading relatively flat since a big surge higher at the start of the year and a smaller rally higher in May.

  • Special: This Company’s Share Price has Increased 1650% Since 2016
  • One trader sees the possibility for another jump higher in shares in the coming weeks. That’s based on the November 26 $17 calls. Expiring in 23 days, over 4,465 contracts traded against a prior open interest of 101, for a 23-fold jump in volume. The buyer of the call paid $0.21 to make the trade.

    With shares just over $11, the stock would need to jump about 50 percent higher in the coming weeks for the shares to move in-the-money. Even if that doesn’t happen, a big move higher in the span of a few days could be good for the low-priced options.

    Action to take: Shares are still well off their prior highs, and the company has been making strides at working on secure wireless communication devices for products such as autonomous vehicles. That makes shares an interesting investment here, although the company is still unprofitable at the moment.

    For traders, the November calls could move higher in the next few days, following a jump higher for retail-favorite names like BlackBerry on Monday. However, traders should look for quick profits on a call option with this small amount of time left on the trade.

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    Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.