Market News

October 17, 2016  Mon 8:02 AM CT

At least one apparently believes that the rally isn't over for Best Buy.

optionMONSTER's market scanner shows that 2,500 November 39 calls were sold for $2.10 to $2.17 while 2,500 November 40 calls were purchased for $1.62 to $1.72 on Friday. Volume was below open interest in the lower strike, indicating that a bullish position was rolled to a higher strike.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

BBY fell 1.31 percent to $39.31 on Friday but is up 27 percent in the last three months. The electronics retailer is expected to report earnings in pre-market hours on Nov. 17.

Overall option volume in the name was twice its daily average on Friday. Calls outnumbered puts by a bullish 3-to-1 ratio.

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