BlackBerry Announces Enhancement To Microsoft Product Security, Options Traders Hammer Calls

BlackBerry Ltd. BB announced it had enhanced the integration of its Unified Endpoint Manager with Microsoft Corporation’s MSFT Microsoft 365 and the Microsoft Azure Active Directory. The strengthened integration creates secure versions of Microsoft’s products.

BlackBerry’s stock tested support at the 200-day simple moving average following the news and bounced up over 7% higher before entering into consolidation on smaller timeframes. On Wednesday the stock lost its uptrend when it fell below the Aug. 26 low of $10.54. Bulls will want to see BlackBerry remain above the $10.35 level or the stock will confirm the downtrend with Thursday’s rally to $11.13 marking the higher low.

Options traders believe BlackBerry’s stock is headed higher and purchased $870,028 worth of bullish call contracts. One trader paid a whopping $435,000 for 2500 calls with a strike price of $11 and a Nov. 18 expiry. The trader paid $1.74 per contract.

See Also: How to Buy BlackBerry Stock Right Now

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call or put option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

The BB Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

• At 10:30 a.m., a trader executed a call sweep near the ask of 385 BlackBerry options with a strike price of $14 expiring on March 18, 2022. The trade represented a $71,610 bullish bet for which the trader paid $1.86 per option contract.
• At 10:30 a.m., a trader executed a call sweep near the ask of 442 BlackBerry options with a strike price of $14 expiring on March 18, 2022. The trade represented a $83,538 bullish bet for which the trader paid $1.89 per option contract.
• At 10:49 a.m., a trader executed a call sweep near the ask of 341 BlackBerry options with a strike price of $11 expiring on Sept. 24. The trade represented a $27,280 bullish bet for which the trader paid 80 cents per option contract.
• At 11:05 a.m., a trader executed a call sweep near the ask of 200 BlackBerry options with a strike price of $11 expiring on Nov. 19. The trade represented a $33,000 bullish bet for which the trader paid $1.65 per option contract.
• At 11:05 a.m., a trader executed a call sweep near the ask of 200 BlackBerry options with a strike price of $11 expiring on Nov. 19. The trade represented a $33,000 bullish bet for which the trader paid $1.65 per option contract.
• At 11:05 a.m., a trader executed a call sweep near the ask of 500 BlackBerry options with a strike price of $11 expiring on Nov. 19. The trade represented a $83,000 bullish bet for which the trader paid $1.66 per option contract.
• At 11:06 a.m., a trader executed a call sweep near the ask of 400 BlackBerry options with a strike price of $11 expiring on Nov. 19. The trade represented a $67,600 bullish bet for which the trader paid $1.69 per option contract.
• At 11:10 a.m., a trader executed a call sweep near the ask of 2500 BlackBerry options with a strike price of $11 expiring on Nov. 19. The trade represented a $435,000 bullish bet for which the trader paid $1.74 per option contract.
• At 11:52 a.m., a trader executed a call sweep near the ask of 300 BlackBerry options with a strike price of $11 expiring on Oct. 15. The trade represented a $36,000 bullish bet for which the trader paid $1.20 per option contract.

BB Price Action: BlackBerry is trading up 3.3% to $10.74 at publication time.