Ophir Gottlieb | Jun 26, 2013 03:43AM ET
Research In Motion Limited (BBRY) is a designer, manufacturer, and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services, it provides platforms and solutions for seamless access to information, including e-mail, voice, instant messaging, short message service (SMS), Internet and intranet-based applications and browsing.
This is a vol note with earnings approaching -- but it's actually not an elevated vol note, rather, a curiously low vol given the event about to take place on 6-28-2013 BMO (i.e. earnings).
Let's start with the Charts Tab (one-year) below. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue vs HV180™ - pink).
But this is actually a vol note, so let's turn to the one-year IV30™ chart in isolation, below.
If you look back at that isolated IV30™ chart and exclude today -- the implied was in the high 70's. Now it's popping and my best guess is that it will continue to rise. The oddity is how long the vol stayed depressed and how quickly it's rising. Also, as we get further and further into the discovery of how good (or not) BBRY 10 will be, the company's future again is on the line. If BBRY v10 fails, then we go right back to questions of obsolescence. It feels like the implied should crack 100% withing a couple days, and if not, then is that vol too low?
Finally, let's turn to the Options Tab for completeness.
Disclosure: This is trade analysis, not a recommendation.
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