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A Random Walk In The Park On A Monday Morning. A Caution. Monday Mornings Are Often Not An Option Players Best Friend

Let's start with this. It's now 10:26 a.m. A bet on Caterpillar rebounding by the end of the week. There are no takers. Why have to watch the screen for the next four days in agony waiting for a rebound which if happens is just a "break even trade"? But Wait. I made a mistake. The market is actually now down 668 points. What else can we look at? Interactive Brokers. These kind of stocks always do poorly on days with the threat of margin calls. Yet there is something interesting about the printout I am about to show. It is that these options are "one-month-out" Calls. These longer term options trade differently than short term options. (these options trade in one month intervals). If the stock we are following stops it's freefall the value of the options will nudge up ten, fifteen or twenty percent. A seven dollar option Call might creep back up to $8.00 or $9.00 at which time it could be sold. In contrast with a five day option a slight reversal in ...
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BlackBerry - How Long Will the Wait Be for This Company to Turn a Profit?

I want to begin this blog by saying I am embarrassed to be writing about this company. So many investors know so much more about this company than I do. I am not privy to any inside information. I have just scanned a fifty nine page financial report on the company that you can find on the website "Sedar". I note a recent litigation settlement. The company seems to think thats all part of doing business and I note they sold their company aircraft. There are 577 million shares outstanding and they lose money. Shareholders have not had much to cheer about so far this year. Here is a three year chart and year to date chart.
So far so good? Are you wondering where I am going with all this? First I want to talk about the big bounces it had in each of the last two years. Other stocks too had unusual bounces like this one. I mentioned in a blog last May the bounce on a stock called Sundial once had. Please read this next paragraph. It's the essence of what "meme stocks" are all about. Blackberry unexplainably got sucked into this "meme stock" mentality.
Might BlackBerry ever regain some of it's meme stock followers? That is one question somewhat worthy of consideration which the markets are totally discounting. I get it. Other meme stocks are also beat up. Option players are now happy playing hot things like Caterpillar jumping up five dollars each day. BlackBerry Call options are now totally out of fashion. Now here is the hard part about writing this blog. The part about selling the sizzle as to why I think better times are just around the corner. The big question is, if they are then why isn't anyone recognizing this? Yet then again, why hold Call options on a stock which is in decline? Is BlackBerry really now onto something good? Read this.
Now also read this. If do you any research you will learn that BlackBerry products are now incorporated into the designs of millions of vehicles already on the road.
Is it now time to be considering medium term Call options on BlackBerry? Let me say maybe. Look at the volume on one of their short term Call options series that expire on December 23st 2022. It looks like someone just closed out their postion of seven contracts.
577 million shares outstanding and zero open Call options positions on the Dec 23 $4.50 Calls which now expire in about 45 days. These are the ones close to being "in-the-money" and potentially most likely to bounce on any good news. It's absurd. At some point in time there will have to be glimpses of better times ahead. Remember also that it was recently considered to be a meme stock. Why is it now so out of fashion? Might I suggest that the least you can do to follow this situation is to register online for company updates. P.S. Maybe I should write a blog about the January 2024 Calls. So much could happen in a one year time period.** BlackBerry has entered a phase where it not big on doing news releases and not big on drawing attention to themselves. Disgruntled shareholders are kind of stuck in limbo waiting for better days. * a look at this stock the morning after this blog.
(This is also interesting).

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