Traders suspect that RIM may be more successful with their newest earning report than many had previously predicted and this may be extremely good news for options traders. Blackberry devices have been losing traction ever since iPhones and Android phones began capturing the bulk of the market share and this has led many investors to become skeptical about the company’s future. The last Blackberry device that launched was a huge flop and managed to drop the company’s stock price by 12% in the course of a single week.
However, those considering their option trading strategies may be interested to learn that many options traders are actually betting on RIM going up. This is because many believe that RIM’s fourth quarter earnings will actually show up higher than previously expected. This is based on comments by professional analysts that believe the stock will only rise.
Some options traders are wagering that BlackBerry BB.T +1.56% maker Research In Motion Ltd. will surprise investors with good news when its latest earnings report hits the tape later this week.
Last Friday’s launch of the newest BlackBerry device underwhelmed investors and the company’s stock price fell 12% from Friday through Monday. But Tuesday’s options trading saw some large bets that the company, which is slated to release fiscal fourth quarter earnings Thursday, will see its shares move higher through the end of this week.
“This is a company that can move significantly, and in the near-term, the options market is predicting some fireworks,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research. Click here to read the rest of Options Traders Foresee ‘Fireworks’ With RIM Earnings.
We’ll keep an eye on this story on our blog and will keep youupdated as more information arises.