I’ve held this trade for a while and have done multiple trades to manage it. For this one, I will just post what my existing positions are on Blackberry and continue writing about it on a go forward basis.
Long 10x Jan 20th 2023 $5 Calls
Short 10x Feb 26th $13.5 Calls
Overall Net Cost = $10.15
Break Even at Expiration – $10.15 + $5 = $15.15
As of February 24th 2021
Admittedly, I was caught up in the hype of Blackberry when it was first caught up in the WallStreetBets (WSB) insanity in mid January. The stock has tanked since I put this trade on and so has the value of my long calls. Luckily call premiums were high when I first put the trade on and my total cost has been significantly reduced.
Blackberry was caught up in WSB again today with an 8.85% mid day gain to $11.32. With two days left to expiration, it will be interesting to see if we hit that $13.50 cap by Friday. If so we’ll decide on Friday how to manage the trade, and if not, new calls will be sold next week.
Trade Update on March 1st
Unfortunately the WSB hype did not last long for Blackberry and the stock ended the week in the low $10s again. With the short $13.5 calls now expired, I sold more calls expiring this week. It sucks that premiums on Blackberry options have come crashing down. I’ll be patient with this one for now and keep selling weekly calls.
Short 10x Mar 5 $12.50 calls: ($0.11)
Overall Net Cost = $10.04
Break Even at Expiration – $10.04 + $5 = $15.04
Trade Update on March 4th
Very ugly time for tech stocks right now including for Blackberry. In order to continue recouping some of the cost of this trade, I sold some $12 calls with the stock trading at around $10. We will see at the end of the week where we’re at with tech stocks and Blackberry specifically.
Sell 10x Mar 12 $12 calls: ($0.17)
Overall Net Cost: $9.87
Break Even at Expiration: $9.87 + $5 = $14.87
Trade Update on March 12th
We caught a lucky break that tech stocks came roaring back the last two days of the week. $BB ended the week just shy of our $12 strike. Unfortunately I sold $13 strike calls earlier on in the day and now they are worth significantly more, but if the stock breaks $13 next week, this dog of a trade will probably be break even. We’ll see what happens!