I just want to let you know that i am not a financial advisor, so please do your research before investing or trading financial securities Music. Today, i’m going to talk about blackberry, the ticker symbol is bb and why it has gone up in the last few weeks and what my price target is for the upcoming year, so stay tuned until the end. Blackberry is a software company specializing in enterprise software internet themes in cyber security, blackberry, exited its legacy: smart phone hardware, business between 2016 and 2020., the stock price closed at 9.84. On friday january 15th, it reached a high of 11.95 pre market. This uptrend was due to the announcement that blackberry sold off its patents from its dead smartphone business to huawei. Since the company isn’t focused on smartphones anymore, the cfo stated that blackberry sold 90 pieces of intellectual property to huawei blackberry’s. Current focus is on developing products and cyber security and artificial intelligence. Blackberry started to pick up momentum back in december when they announced they were going to team up with amazon web services to develop and market blackberry’s intelligence vehicle data platform. Ivy blackberry ivy is a scalable cloud connected software platform that will allow automakers to provide a consistent and secure way to read vehicle sensor data normalize it and create actionable insights from that data both locally in the vehicle and in the cloud. Auto makers can use this information to create responsive in vehicle services that enhance driver and passenger experiences.
The ceo john chan stated data and connectivity are opening new avenues for innovation in the automotive industry and blackberry and aws share a common vision to provide automakers and developers with better insights so that they can deliver new services to consumer. This software platform promises to bring an error of invention to the to the in vehicle experience and help create new applications, services and opportunities without compromising safety, security or customer privacy. We are pleased to expand our relationship with aws to execute this vision and deliver blackberry ivy. If this is successful, the partnership could solve a huge problem for automakers and open up a giant addressable market as vehicles become more automated and sensors and data become more important. On january 14, the ceo john chan tweeted. Thank you for your partnership to sony. You are an icon and i look forward to experiencing your electric vehicle embedded with blackberry software blackberry’s qnx software is embedded in more than 175 million cars already on the road. Blackberry has a broad portfolio of functional safety, certified and secure software, including its qnx operating system, development tools and middleware for autonomous and connected vehicles. Automakers and the tier ones, use blackberry, qnx software and their advanced driver assistance. Digital instrument clusters, connectivity modules, hands free that appear in car brands, including audi, bmw, honda, hyundai kia, maserati porsche, toyota and volkswagen. So this partnership with sony is a big positive catalyst. With all of this said, i do see a lot of potential in this company.
They were able to survive from a failing phone business to partnering. Up with amazon is a big turnaround for blackberry right now. The stock is at a strong support of and fifty cents back in november. It was acting as a resistance, but couldn’t break through until the past week. I do see this stock going to at least twenty dollars by the end of this year. Blackberry also has options that you can buy and sell so on tuesday i’m going to buy some shares as well as sell some cash secure, puts to generate extra money so i’m going to take a look and see what i can get in premiums on tuesday. So we’re going to go to trade, they do have weekly options which i like, because i have more control of it so i’m, going to open this up close this here and we see that the implied volatility is over a hundred percent it’s that’s good for option. Sellers, so what i’m going to look at is how much i can receive in premiums by selling a cash secure print in order to sell a cash. Secure put you need to have enough money to buy a hundred shares at the strike price, for example, if i were to sell a nine dollar strike price, i would need to have 900 in my accounts, for this trade to execute, and for that i would collect 58 it’s actually not a bad return, so i can wait until this.
The stock price hits my nine dollars. If it does. On 22 january, i will have to buy a hundred shares on nine dollars if it doesn’t hit nine dollars. On january 22nd, the option won’t expire worthless, i get to keep the premium and i don’t have to buy a hundred shares. I get to keep the premium no matter. What happens whether i buy a hundred shares if the stock price gets to nine dollars or below, or it does not so that’s the beauty of selling a cash secure, puts you get to keep the premium up front? So let’s say you just want to collect the premium without owning shares. You can just go ahead and go deep out of the money. So, for example, you can get six dollars. I know it. Doesn’T seem much but you’re only putting up seven hundred dollars. If you were to go to a february option, you can get thirty seven dollars now or 124 dollars with a nine strike price. Okay, let’s, take a look if you were to buy a call option. So if you were to buy a call option um at the money that would be ten dollars, you would be looking around a hundred dollars for the option which isn’t too bad. But this is the 22nd january, so you would you’re wanting the stock to go up over 10 dollars by january 22nd. I usually don’t, like short term options, because it’s just hard to predict where a where the stock price will go short term, but in the long term it seems like blackberry will continue to go up now, knowing that they are partnering up with sony and they have Other partnerships as well, so we can go to a june.
You would be looking at 200 or 293 dollars for a call option with a 10 strike price. I might also consider a leap option. There is a january 22nd leap option with a 10 strike prize you’re. Looking at 410 – or there is a longer january 2023, with a 10 strike prize you’re looking at 520, but normally when i buy a leap when i buy a leap option, i try to look for a delta that’s at least 80 or above the higher. It is to one it will represent the actual stock, for example, if the stock goes up one dollar, if blackberry goes up one dollar, this contract will go up, so this one is 77.77, so this will go up 77 cents. We have this one here. This is a 90.98 delta, so if blackberry goes up one dollar, this contract will go up 98 cents, so it really represents the stock, but this one will cost it’s a little bit more it’s a thousand dollars. So the price is almost the same as if you were buying 100 shares, because the price right now is at 984 that’s 984 dollars. This is 940, but you’re not really getting much of a discount there. So i would consider just going for a 88 80 or higher strike price like the 600 you’ll be saving at least 300, or this one still saving about 300. If you were to buy a leap call that expires in 2023.
So that is my plan for monday. I will be looking at leap options. I will be looking at cash that could put and i will also buy some shares. Let me know in the comments below what you think of blackberry and please don’t forget to hit that like button and subscribe. If you found any value in this video, i tried my best to provide value and there’s any suggestions or feedback. I can do to make my videos better.