MomentumOptionsTrading.com Midday Update for 6/19/2014
BlackBerry (BBRY) Beats Estimates/ Profit Alert!!!
I mentioned yesterday I had an earnings trade that could post a triple-digit return in less than 24 hours and it’s time to ring the register.
Shares of BlackBerry (BBRY, $9.30, up $1.01) are surging 12% after posting better-than-expected earnings ahead of the open. The company is still losing money but the CEO said they are close to break-even on hardware.
BlackBerry lost $0.11 a share on revenue of $966 million. The suit-and-ties were looking for a loss of $0.26 a share on sales of $963 million.
I often mention a 5%-10% move in a stock often means a triple-digit return for near-term options and with expectations so low on Wall Street for BlackBerry, shares are zooming as the shorts cover.
The bulls pushed higher highs at the open but have taken a breather heading into the second half of trading.
The Dow is down 36 points to 16,870 while the S&P is lower by 2 points to 1,955. The Nasdaq is declining 12 points to 4,351 and the Russell 2000 is off 2 points to 1,181.
I have a lot to cover with the current trades so let’s hit the Members Area for the updates.