NEW YORK ( TheStreet) -- Will BlackBerry (BBRY - Get Report) disgust the bulls or send bears into a short squeeze frenzy Friday when it reports earnings? TheStreet's Jim Cramer and Debra Borchardt are telling investors how to play it.
Based on some channel checks, BlackBerry is selling a ton of phones. But based on others, the company only has empty stores. So what do investors do with a stock that is clearly going to move big tomorrow?
"It cries out for an options strategy," Cramer said, regarding the heightened volatility and 30% short float.
He added that investors are going to experience a similar event next quarter when BlackBerry again reports earnings, because the company hasn't had a full quarter in North America to sell its new phones.While bulls argue the company is the next Samsung and bears say it's the next Palm, Cramer asks: Why can't it be in-between? At $12, the stock has found substantial support and at $15 substantial resistance. Because of this, Cramer says that by purchasing call options, traders can limit their downside while taking advantage of a move to the upside. "The risk