NVDAcontentAD

Short-Term Bulls Descend On Best Buy Co Inc (BBY)

Best Buy Co Inc's technical struggles aren't keeping bullish traders away

Digital Content Group
Oct 16, 2014 at 11:02 AM
facebook X logo linkedin


Best Buy Co Inc (NYSE:BBY) is up slightly this morning at $30.95, but its year-to-date deficit is still more than 22%. Nevertheless, calls are trading at a 57% mark-up to the average intraday rate, and short-term strikes are in demand, per the stock's 30-day at-the-money implied volatility (IV) -- up 9.9% to 46.8%.

Digging deeper, BBY's most active option by far is the weekly 11/14 32-strike call, where more than 2,500 contracts are on the tape. Almost all have crossed at the ask price, IV has jumped 5.9 percentage points, and volume outstrips open interest of just one contract, collectively pointing to buy-to-open activity.

By purchasing the calls, today's traders anticipate BBY will topple $32 by the close on Friday, Nov. 11, when the weekly series expires. In order to do so, the stock will have to hurdle a potential layer of resistance at its 80-day moving average, which is just overhead at $31.35.

As alluded to, Best Buy Co Inc (NYSE:BBY) has struggled on the charts. Nevertheless, 13 out of 19 covering analysts have doled out "buy" or better recommendations on the equity. In other words, the stock could be vulnerable to potential downgrades.

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.

 

futupic

 
 
 
 

Follow us on X, Follow us on Twitter