Best Buy Co., Inc (BBY) is an international tech retailer based in Richfield, MN that operates just under 2,000 brick and mortar locations across the US, Canada, Mexico and China. At the time of this post (12:55PM CST), BBY is currently trading down 1.34%, to 38.62 on the day. The stock continues to push the 40.00 level resistance on the daily chart, but has thus far been unable to break higher with any conviction after breaking lower through this level and eventually gapping down hard in mid-January of 2014.
Earlier this morning, we detected and flagged some unusually bullish options activity in the BBY Feb ’15 40.0 calls as a large buyer stepped in and bought a huge lot of over 8,500 contracts against an open interest of just 264. This purchase went off above the ask for $2.09, and in conjunction with the open interest statistics, we can be confident that this was an opening long transaction. It would appear that a confident buyer anticipates Best Buy will be able to finally break above key 40.00 resistance going into the second month of the New Year, and the initial block purchase of over 8,500 contracts represents a cash outlay of approximately $1,794,265 before commissions. As of this post over 10,800 of the Feb ’15 40.0 calls have traded on the day.
Trade: A trader bought 8,585 BBY Feb 40 Calls for $2.10
Risk: $210 per 1 lot
Reward: Unlimited
Breakeven: $42.10
Regards,
Andrew Keene
KeeneOnTheMarket.com
