Best Buy (BBY) Offering Possible 7.99% Return Over the Next 8 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 $31.00 short call and a strike $36.00 long call offers a potential 7.99% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $31.00 by expiration. The full premium credit of $0.37 would be kept by the premium seller. The risk of $4.63 would be incurred if the stock rose above the $36.00 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 at 33.97 level which suggests that the stock is neither overbought nor oversold at this time.

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

Sharp's all-screen AQUOS Crystal arrives at Sprint
Sun, 12 Oct 2014 02:40:00 GMT

Europe shares open sharply lower as volatility continues
Fri, 10 Oct 2014 07:00:00 GMT

Report: Amazon to open retail store in NYC
Thu, 09 Oct 2014 21:56:16 GMT

HTC Shifts Focus to Avoid Competing with Samsung, Apple
Thu, 09 Oct 2014 19:02:00 GMT

Icahn asks Apple to make tender offer
Thu, 09 Oct 2014 13:00:00 GMT

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