Best Buy Offering Possible 7.3% Return Over the Next 29 Calendar Days

Best Buy's most recent trend suggests a bearish bias. One trading opportunity on Best Buy is a Bear Call Spread using a strike $27.00 short call and a strike $32.00 long call offers a potential 7.3% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $27.00 by expiration. The full premium credit of $0.34 would be kept by the premium seller. The risk of $4.66 would be incurred if the stock rose above the $32.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Best Buy is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Best Buy is bearish.

The RSI indicator is below 20 which suggests that the stock is in oversold territory.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Best Buy

H-P Chromebook Points to Trends in Chips, Patents
Fri, 24 Jan 2014 21:42:51 GMT
The Wall Street Journal – A visit to Best Buy sometimes brings insights about where manufacturers are placing their bets. One example is a Hewlett-Packard Chromebook that recently appeared in the store's computer section.

Earnings: The pain of disappointment
Fri, 24 Jan 2014 20:43:00 GMT
CNBC – CNBC's Sheila Dharmarajan looks at the factors that contributed to weak earnings for some big names in the retail sector.

Finding the next Tesla: How to spot momentum stocks early in the game
Fri, 24 Jan 2014 15:12:26 GMT

YouTube Super Bowl ads not waiting for kick off
Fri, 24 Jan 2014 00:24:00 GMT
Investor's Business Daily – YouTube Super Bowl ads not waiting for kick off

Best Buy Down to Strong Sell
Thu, 23 Jan 2014 19:00:04 GMT
Zacks – On Jan 22, 2014, Zacks Investment Research downgraded Best Buy to a Zacks Rank #5 (Strong Sell).

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