We received a question from Vijay K, one of our readers of the “Mastering Derivatives” column. The query relates to our article about converting a loss-making bull call spread to a ratio spread publis
Bullish Trade idea (long-term):
Given the elevated implied volatility and low stock price, it is more prudent to own the equity.
Alternatively, $12 February monthly opex puts are trading at $1.40 and can be sold cash secured for an effective ownership price on the stock of $10.60 if assigned (this represents an 11.77% return on risk in less than 1 month)
Other considerations:
BB has announced partnerships with AMZN, ZM, OnwarMobility and Huawei
Blackberry owns over 30,000 patents, by far the most of any company in Canada and many of which are applicable to smartphones, which they will no longer focus on.
Expect more patent sales, further bolstering their balance sheet.