Investors in BlackBerry Ltd (Ticker: BB) saw new options available today with a March 2027 expiration. Notably, a put contract at the $7.00 strike price has a current bid of 54 cents, allowing investors to potentially purchase stock at an effective cost of $6.46 per share, based on the current trading price of $9.20—representing a 24% discount. The likelihood of this put contract expiring worthless is estimated at 79%, offering a potential return of 7.71%, or 9.68% annualized.
On the call side, a contract at the $17.00 strike price has a bid of $1.45. If investors purchase shares at $9.20 and sell this call, they commit to selling at $17.00, potentially yielding a total return of 100.54% if exercised. This strike represents an 85% premium to the current stock price, with a 57% chance of expiring worthless, allowing investors to retain shares and collect the premium, which could enhance returns by 15.76%, or 19.77% annualized.
The implied volatility for the put is 112% and for the call is 103%, while the actual trailing twelve-month volatility is calculated at 49%.
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