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Afternoon option trade alert: Best Buy put buying
Related Symbols: BBY
During the last hour of trading, bearishness crossed the tape in Best Buy (NYSE: BBY) in the April options expiration month.
At 3 p.m. EST, more than 5,000 out-of-the-money April 35 puts changed hands at the ask price of 25 cents per contract. This options action suggests investors bought these puts, and will make money if BBY shares close lower than $34.75 when the options expire in roughly one month. The April 35 puts are home to current open interest of 1,000 contracts, indicating the action was initiated to open. These puts have dropped five cents so far today, and have an implied volatility of 38% compared to a 30-day historical volatility of 23%.
BBY shares have climbed 69 cents, or nearly 2%, to $40.16 on the day. The stock has sold off around 11% since reaching a high of $45 in December. BBY did not announce any news today to account for the pop-up in the stock, and is scheduled to announce earnings of $1.79 a share on March 25 before the market opens.
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