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.

News Archives

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »