Welcome to today’s video, traders, where we’re going to look to trade the BlackBerry earnings call!
What’s this popular stock’s chart telling us? Well, BlackBerry’s chart has what I like to call a “WTF” pattern unfolding. That’s because BlackBerry Ltd. (NYSE: BB) is very much a “meme stock,” much like the trendy GameStop (NYSE: GME) play that’s been dominating headlines for months now.
But that doesn’t mean we can’t trade it… and hopefully make some money!
Here’s what I’m targeting as an idea on how to trade the BlackBerry earnings call…
Right now, with BB around $9.25 a share, market makers are implying a $1.20 move — either higher or lower — following its Tuesday earnings report.
That means if it turns bearish, the stock is going to print around $8 per share. And if it goes up, we’re looking at about $10.50 per share.
That said, the $10.50 strike call options are expensive since that’s where market makers are already pricing the stock. And if the stock hits that $10.50 mark, those calls will barely go up in value.
The puts, however, are priced lower. This is what we call a “call skew,” as the calls are priced higher than the puts.
So what’s the play here? Is BlackBerry going to rise or plummet?
Tune into today’s video for more insights before you look to trade the BlackBerry earnings call.
As always, leave your thoughts in the comments below. And don’t forget to subscribe to my YouTube channel to stay up to date with all things trading.
And as a quick side note, catch me at 7:35 a.m. Friday on Cheddar TV, where I’ll be discussing what’s ahead for Wall Street!
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