BlackBerry call volume is outpacing its intraday average by a two-fold margin.
BlackBerry call volume is outpacing its intraday average by a two-fold margin and put volume roughly eight times over. More than one-third of the calls have traded at the April 9 strike, where 15,459 contracts are on the tape.
Over 90% of the in-the-money calls changed hands at the ask price, suggesting they were bought. Also, implied volatility is on the rise, and volume more than doubles open interest at the strike, making it safe to assume some of these are newly bought bullish bets on BBRY.
By scooping up the calls, the traders expect BlackBerry -- currently 1.4% higher today at $9.33 -- to continue muscling its way north of the $9 level, which recently emerged as a layer of technical support. Specifically, because speculators paid a volume-weighted average price (VWAP) of $0.98 for the contracts, they're looking for the stock to surpass $9.98 (strike price plus VWAP) within the option's lifetime.