Best Buy Co., Inc. (BBY) Short-Term Bulls Step Up

Developments across the border have Best Buy Co Inc (BBY) calls in high demand

Digital Content Group
Mar 30, 2015 at 12:18 PM
facebook X logo linkedin

Best Buy Co Inc (NYSE:BBY) is up 0.8% today at $38.80, after the company announced it will shut down 66 of its Canadian Future Shop stores, and the remaining locations will now operate under the Best Buy brand. In response, call buying has picked up. The contracts are changing hands at twice the normal intraday rate, more than doubling today's put volume.

The most popular option is the weekly 4/2 39-strike call. Signs point to buy-to-open activity, with traders looking for the shares to extend gains above $39 by the close this Thursday, when the weekly series expires.

According to the stock's Schaeffer's put/call open interest ratio (SOIR), it's not rare for short-term speculators to prefer BBY calls over puts. The reading of 0.53 reveals that call open interest largely outweighs put open interest among options expiring within the next three months. Looking back at the past year, near-term options traders have been more call-skewed only 6% of the time.

If Best Buy Co Inc (NYSE:BBY) continues to struggle beneath its year-to-date breakeven mark, though, puts may see more action. Additionally, the shares have underperformed the S&P 500 Index (SPX) during the past three months.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI