Market News

October 14, 2016  Fri 6:14 AM CT

Traders were snapping up calls in Best Buy yesterday for the second session in a row.

optionMONSTER's monitoring system detected the purchase of more than 6,200 November 39 calls for $1.97 to $2.51 yesterday. These represent new positions, as volume surpassed the strike's open interest of 1,150 contracts, and follow buying in the Weekly 41 and 42 calls expiring on Oct. 28 cited Wednesday by our InsideOptions Pro subscription service.

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 rose 0.15 percent to $39.83 yesterday and is up 25 percent in the last three months. The electronics chain's next earnings report is expected in pre-market hours on Nov. 17.

Overall option volume was 3 times greater than average in the name yesterday. Calls outnumbered puts by a bullish 7-to-1 ratio.

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