A major downfall for BBRY is its failing demand in the corporate industry. Enterprises are becoming more lax on what devices their employees use, and so workers are choosing the more popular iPhone and Android phones which have many applications to offer to those in the workforce. To counter the competition of these other smart phone brands, earlier this week the company released its Secure Work Space project (an addition to the BlackBerry Enterprise Server) which allows clients to manage files and corporate information on their mobile devices. Though some believe that this move could potentially set BBRY on top of the mobile device management (MDM) industry, other long-term analysts see BBRY’s MDM avenue as a non-lucrative opportunity.

BBRY is currently down about $4.01 for the day and under YTD by about 10.3%. Back in the company’s hay-day in mid 2007, BBRY was trading at an all-time high of $230.50 until a lethal $138.66 nose-dive occurred soon after from which BBRY never fully recovered. 

Unusual Option Activity:

We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long: http://bit.ly/11f0L9u .

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

Unusual Option Activity:

We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long: http://bit.ly/11f0L9u .

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

Unusual Option Activity:

We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long: http://bit.ly/11f0L9u .

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

Paper bought 11,000 GDXJ Jan 6 Puts for $0.45 (4.7 times usual volume) with stock at $8.40
Paper bought 10,000 GG Jan  15 Puts $0.64 (2.1 times usual volume) with stock at $22.77
Paper bought 1,000 OPK Sep 7 Puts for $0.90 (3.7 times usual volume) with stock at $6.99

In recent news Clearwire Corp. is looking to merge with Sprint Nextel Corporation. Clearwire has recently backed out on a potential deal with Dish Network and if the merger were able to go through, Sprint would acquire around 50% of stock in the company. Some of the investors within Clearwire that would benefit from this deal are Comcast, Crest Financial, and Mount Kellet Capital. Although the deal for Clearwire has not gone through yet, the company noted that it wants shareholders to vote in favor for the merger with Sprint. Sprint announced the bid for Clearwire at a rate of 5$ per share which would put the value of Clearwire at 14$ billion. It beat out Dish’s bid of $4.40 per share and has made investors who were unsure of Sprint’s previous bids now on board with the merger. If the deal does not go through the largest shareholders of Clearwire, who own a total of 9% of the company, have announced they will still sell their shares to Sprint.

One of the reasons for the aggressive move from Sprint is that they are looking to utilize Clearwire’s spectrum where it will be able to build out a strong LTE network. By doing this it will allow them to better compete with companies like Verizon who have already started the process for plans to start their own LTE network. If Sprint were able to acquire Clearwire they also hope to improve their high-speed data network and wireless services. 

My Trade: Buying the CLWR Jan 2014 5-5.5 Bull Call Spread for $.07

Risk: $7 per 1 lot
Reward: $43 per 1 lot
Breakeven: $5.07

Greeks of this Trade:

Delta: Long
Gamma: Long
Theta: Short
Vega: Long

(Disclaimer: I am long the CLWR Jan 2015 4 Calls)