Buy Alert: March 20, 2015

Marcus Haber | March 20, 2015

Buy Alert: March 20, 2015

Trade Details

Buy Blackberry Limited (BBRY) May 15^th 10 Calls for $0.75 or better (lower)

Why?

Blackberry has been in the doghouse for several years now, and rightfully so. Even quite recently, the company is dealing with major downgrades from analysts. The key is, don’t think of BBRY as a competitor to the big players, but as a niche player. The company’s focus on ultra secure products is going to allow it to become profitable once again – just not like it used to be. Still, there’s plenty of money to be made by options traders.

We’re going to buy May calls. Conservative investors can take profits at $11. Aggressive investors can hold up to $12. For risk control, conservative traders should exit at $8.75, while more aggressive traders can hold down to $8.