From Steve Smith. Best Buy shares are flat today at $44.60 but have gained some 19% in the past five weeks catapulted by two gaps higher, first on March 5 when it was announced that BBY would carry iPads when they were released (they have now sold out their initial inventory) followed up by the strong earnings reported on March, 25. Recent option activity had been focused on front month but today sees notable longer term bullish positioning as block of 7,000 of the September $60 calls have were bought, now a total a 10,000 have traded, in what is an opening purchase. The company’s next earnings report is not until early June.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.