Best Buy Co., Inc. (BBY)
Shares of the consumer electronics retailer are up 1.25% to stand at
$34.31, but earlier rallied as much as 2.9% to touch
an intraday and one-month high of $34.86. It looks like a number of options investors are initiating bullish
positions on Best Buy today ahead of the firm's second-quarter earnings
to be released ahead of the opening bell on Tuesday. One optimistic individual enacted a ratio call spread.
- Buying 3,500 calls at the October $35 strike at a premium of $1.35 each.
- Selling 7,000 calls at the higher October $37 strike for premium of $0.64 apiece
- Net premium paid to establish the spread is reduced to $0.07 per contract.
Busy Week with Data
This week we have a long list of data to work through. We are cock-eyed right now, rasping for anything that gives us hope. We have celebrating "news that isn't bad as it was before" instead of good
news. We are really reaching in this market.
We have a whole lot of activity this week as you can see by this schedule.
"We'll also get two other monster announcements on Thursday... capacity utilization, and industrial productivity. We call them monsters simply because they have such a strong and consistent correlation with long-term market trends. And, both have been trending higher - with the overall market - since the middle of last year. Both are also expected to inch higher this time around, which is good news for the true long-termers."
Precious Metals Correction Coming?
Many people are bullish on Gold (GLD) and the other precious metals, but some are talking about a correction coming soon. There is talk of those in gold to tighten your stops just in case this correction comes in the next week.
This is not long term, this is a short term correction. Just be careful.