re: BlackBerry transformation - time to buy is now

now that all the lightweights are weeded out, lets ride this rocketship

A few minutes ago, the smart money was buying BB this week's $13.50 and next week's $14 calls. So let's see.

quote:

---

A few minutes ago, the smart money was buying BB this week's $13.50 and next week's $14 calls. So let's see.

---

Can someone please explain to me what a "call" means?

It’s pretty involved, you’re better off googling “Call options” tbh. There’s a lot of good intro material out there

quote:

---

Can someone please explain to me what a "call" means?

---

A stock call is an option giving the buyer of the option the right, but not the obligation, to buy a specified number of shares of a stock at a specified price, called the "strike price", within a specified time. The buyer of the call option pays a price, called a "premium", for buying the option.

The idea is the buyer of the option believes the stock is going to increase in price more than the per share price he paid for the option.

If it does, he can "call" for the shares to be sold to him at the strike price in the option contract and he can turn around and sell the shares at a profit (or hold on to them).

ETA: An example...

quote:

---

If Apple is trading at $110 at expiry, the strike price is $100, and the options cost the buyer $2, the profit is $110 - ($100 +$2) = $8. If the buyer bought one contract that equates to $800 ($8 x 100 shares), or $1,600 if they bought two contracts ($8 x 200). If at expiry Apple is below $100, then the option buyer loses $200 ($2 x 100 shares) for each contract they bought.

---

LINK

Keep in mind, that you are not obligated to hold the option, let's say the weekly BB $13.50 calls, until expiration.

If you had bought them today for 60¢ and you see that they got to 85¢ within 30 minutes, you could close that position for a 40% gain and be done with it.

It’s still a good long term investment at this price, yes. Not sure what the immediate price action will be

Thanks-I was immediately intrigued when I read your summary the other day, just not ready.

I've been all mutual funds all the time (and still am in my ROTH account). I have had a single mutual fund through a scwhab account sitting doing nothing for about 3 years and wanted to change it up a little bit.

Obligatory bump. Upper decker making some money today between this and GME holy shite.

What the frick just happened with BB?


Some Reddit retards accidentally bought BB instead of GME just now?