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January 4, 2017  Wed 6:47 AM CT

At least one large trader apparently believes that further declines will be limited in BlackBerry.

Our tracking programs detected the purchase of 3,600 January 8 puts for $1.09 and the sale of 3,600 June 8 puts for $1.27 yesterday. Volume was below open interest in the January contracts, indicating that the trader is buying back short puts and rolling them to new ones five months later.

Selling puts locks in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)

BBRY rose 1.02 percent to $6.96 yesterday but is down 14 percent in the last three months. The handset and mobile-software maker is scheduled to report earnings in pre-market hours on March 31.

Overall option volume in BlackBerry was twice its daily average yesterday.

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