Breakaway Gap In Blackberry Should Offer Strong Support

On an individual stock basis, we like Blackberry (BB). The reason being is that shares underwent a breakaway gap recently on very strong volume. These gaps usually begin at the start of a sustained move and usually take place after shares have been consolidating for quite some time. If indeed we have a breakaway gap in play here, the gap should now act as support. Therefore, the high risk/reward play here is to buy 100 shares and to sell an out of money call option immediately against your shares. The proceeds from the call brings your cost-basis right back down to somewhere close to the top of that gap – thereby improving the odds of a successful trade significantly.

Breakaway Gap In Blackberry

Breakaway Gap In Blackberry

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