Best Buy Offering Possible 25% 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 $38.50 short call and a strike $43.50 long call offers a potential 25% 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 $38.50 by expiration. The full premium credit of $1.00 would be kept by the premium seller. The risk of $4.00 would be incurred if the stock rose above the $43.50 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 30.84 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

Roth IRA Recharacterization: The Do-Over That Could Make You Rich
Sun, 12 Jan 2014 13:44:18 GMT
Motley Fool – You rarely get a chance at a do-over, but with Roth IRA recharacterizations, you do. Find out about them here.

3 Reasons Best Buy Is Better Than You Think
Sat, 11 Jan 2014 14:05:56 GMT
Motley Fool – Despite the company's tribulations over the past several years, this showroom business is actually stronger than many think. Here are three reasons why the business may see more customers in 2014.

For U.S. stocks, earnings take center stage
Fri, 10 Jan 2014 23:13:09 GMT
Reuters – After the S&P 500's impressive 30 percent return in 2013, Wall Street will get a better picture of reality next week as the pace of companies reporting earnings picks up. A number of big banks are due …

Amazon Dominates Wal-Mart and Best Buy in This Category
Fri, 10 Jan 2014 23:12:26 GMT
Motley Fool – Amazon’s pricing advantage gives it a significant edge over Wal-Mart and Best Buy in regards to future sales potential.

Moody's Affirms One, Upgrades Three and Downgrades Two Classes of PNCMA 2001-C1
Fri, 10 Jan 2014 23:07:04 GMT
Moody's – Approximately $31.7 Million of Structured Securities Affected. New York, January 10, 2014– Moody's Investors Service has affirmed the ratings on one class, upgraded the ratings on three classes and downgraded …

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