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None BBY

New Calls

None today.
 

New Puts

Best Buy Co - BBY - close: 49.31 chg: -1.09 stop: 52.51

Company Description:
Best Buy Co., Inc. is an innovative Fortune 100 growth company that continually strives to create superior customer experiences. Through more than 840 retail stores across the United States and in Canada, our employees connect customers with technology and entertainment products and services that make life easier and more fun. We sell consumer electronics, home-office products, entertainment software, appliances and related services. A Minneapolis-based company, our operations include: Best Buy (BestBuy.com and BestBuyCanada.ca), Future Shop (FutureShop.ca), Geek Squad (GeekSquad.com) and Magnolia Audio Video (Magnoliaav.com). (source: company press release or website)

Why We Like It:
We are going to try again with a bearish play on BBY. We tried in mid-July but the play was never opened as BBY spiked higher on July 27th after some positive analyst comments. We're not bearish on the company but feel that the stock has gotten ahead of itself with a run from $32 in April to $53 in July (post-split prices). Now that the major stock averages are beginning to retreat into the seasonally bearish August-September time frame this looks like a chance to scalp a few points any consolidation for BBY. We're going to target the $45.50-45.00 range but admit the simple 50-dma near $46.20 could be a problem for bears. If BYY surprises us with a bounce we'll watch the $51.00 level to act as short-term resistance. Considering the relative strength that BBY has displayed over the last few months we have to label this a more aggressive play.

Suggested Options:
We are suggesting the September puts because we plan to exit ahead of BBY's earnings report expected in mid-September.

BUY PUT SEP 50.00 BBY-UJ OI= 15 current ask $2.50
BUY PUT SEP 47.50 BBY-UW OI= 1 current ask $1.40
BUY PUT SEP 45.00 BBY-UI OI= 0 current ask $0.75

*Confirm stock symbols as there are several odd symbols resulting from the recent stock split.

Picked on August 08 at $ 49.31
Change since picked: + 0.00
Earnings Date 09/13/05 (unconfirmed)
Average Daily Volume = 5.0 million
 

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