I used to pick blackberries as a kid. I use the word “pick” softly. I was the Warren Buffet of blackberries when I was younger. I would pick them and go house to house, knocking on doors and selling a nice size zip lock bag of them.

I took all of that money I made from age 5-12 and saved it. I did this every summer for 7 years. When I moved to Jacksonville, Florida, I “started a business” called 2 boys and a bike. It was really just that name on some flyers I posted around the apartment complex. I had a friend who would pick berries and I would pay him and I would sell them. I was homeschooled at the time.

LOTS OF CONCERNS

The story is to shed some light. Blackberry sounds like a very “cutesy” name for a cell phone. The company Research in Motion, ticker symbol formally RIMM, in my opinion, is a fundamentally unsound company. There is always some radical issue with the CEO, or the company’s outlook, or a failed launch of a product.

GOOD STOCK TO TRADE

BBRY still has massive volume on a daily basis, which makes it a fun stock to trade, especially using options. I know a few students who own 1,000 shares or more. The stock is cheap and volatile, which can make for some entertaining investment decisions.

A TRIANGLE IS FORMING

From a technical aspect, it looks like BBRY is in a consolidation, descending triangle of sorts, starting from back in January, 2013. That’s one thing that’s making me hesitant on a possible bullish perspective.

Obviously the $13.50 price is a strong support. BBRY is fighting with the 100 SMA. Because earnings are coming out in just a few days, let’s wait until after earnings are announced to make a better decision. I would be shocked if BBRY actually gapped up due to earnings.

There is incredible premium all the way up to $18.00, which is an incredibly strong support. If you are an investor who owns shares, you could take advantage of this increase in premium due to the implied volatility increase in the options. You could sell the July week 1, 2, 3, or 4 options.

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KEY LEVEL

IF BBRY closes above the strike price you sell on the day of expiration, you would be selling your shares at that strike price. So, if you sold an $18.00 covered call, if you purchased shares for less than $18.00, you could make a nice little return if BBRY does pop and scream bullish after earnings. And of course, if it continues to trade sideways, you keep your entire premium and can turn around and do the same thing in August.

The “CC” green box in my chart stands for covered call. That’s the location of the calls sold which expired in June. The $15.09 is a bullish trigger. IF BBRY closes above that price a stop could be placed under the 100 simple moving average. Again, I would wait until earnings are released for the highest probability of this trade.

Hey, I sold blackberries in the summer and made some solid money. Maybe you could, too!