A very wise man and solid trader I know has been digging around into BlackBerry (BB) . We've been conversing about the opportunities with self-driving cars and BlackBerry's QNX system. I actually wrote about BB back in September.
If you don't want to read it, I'll give you the major takeaway questions:
-- Can BB turn QNX into something more than infotainment within self-driving cars?
-- Will the company's expanded role in fleet system data analysis (artificial intelligence, or AI) catch momentum in the flatbed and fleet market?
-- Will working with Delphi's (DLPH) Aptiv spinoff open the door to self-driving cars?
-- Outside of AI and autonomous vehicles, can BlackBerry draw significant revenue from licensing its smartphone security software?
This all leads to another obvious conclusion: Can the company find a way to bundle it all together in a nice package in time for Christmas? Probably not Christmas 2017, but possibly 2018 or 2019. I think it's a long here with stock and options as the company has enough irons in the fire and cash in the bank to get one or two of these questions answered in a positive light.
Buy to open 100 shares BB at the market (currently $10.68)
Buy to open 1 January 2018 $10 call at $1.10 (limit $1.20)
Net cost $1,178
Max risk $1,178
Max reward: Unlimited
Days until expiration: 77
Risk: Moderately aggressive
The call purchase is in-the-money, so it is really a stock replacement here with a built-in stock equal to around $9.50 if I were buying the stock outright.
(This commentary originally appeared Friday on Real Money Pro. Click here to learn about this dynamic market information service for active traders.)