Options Traders Respond to Best Buy's Quarterly Win

Puts are winning out in the options pits so far today

Deputy Editor
Aug 30, 2022 at 10:34 AM
facebook X logo linkedin

Best Buy Co Inc (NYSE:BBY) is up 4.7% to trade at $77.10 at last glance, after the electronics retailer beat top- and bottom-line estimates for its second quarter, with discounted prices driving demand. The company also announced a smaller-than-expected drop in comparable store sales. 

On the charts, familiar pressure at the $80 level looms overhead, after its mid-August breakout above it was rejected by the 140-day moving average. Though the stock has managed to remove itself from its June 30, two-year low of $64.29, the equity is still down 24.7% year-to-date. 

As is typical after earnings, BBY is seeing a surge in options activity today, with overall options volume running at eight times the intraday average. So far, 14,000 calls and 19,000 puts have crossed the tape. The weekly 9/2 80-strike call is the most popular, followed by the 68-strike put in the same weekly series, with new positions being opened at both. 

Analysts have yet to chime in today, but there is plenty of room for optimism. Of the 17 in coverage, 13 carry a "hold" or worse rating. Plus, the 12-month consensus price target of $77.85 is only a slim premium to current levels. 

It's also worth noting that short interest makes up 5.7% of the stock's available float. It would take nearly four days to buy back these bearish bets, at BBY's average pace of trading. 



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.