4BBY trade ideas
BBY Earnings Play; Unbalanced Iron Condor W/ $0 Upside RiskBestBuy has been consolidating since the beginning of July. Earnings are due tomorrow before the opening, and our IV% is at 56%, so I am looking for a play here to collect a credit.
Historically looking at BBY we can see usually see a slightly bullish move after earnings (EPS, which is usually beating estimates). Because of this, and being at the top of this range with our other indicators showing bullish momentum as indicated on the chart, I want upside protection, while I expect the range in BBY to continue through expiration this Friday.
All that being said, and what is shown on the chart, I am selling for a $0.50-$0.55 credit the 25/29.5/34.5/35 Put/Put/Cal/Call. This means if we break out from here, not only will I likely be putting on another bullish trade to take advantage of the breakout, but I will still have a small (VERY small) profit. That however beats a loss.
Ideally, we would like volatility to collapse and BBY to stay between $29.00 and $34.50, but anything above $29.00 would be acceptable.
BBY - double top forming within rising channels.Pullback
Status: Short - cutting my loses. Maybe premature but holding above 200ma and trendline
Horizontal S&R: no
Channel S&R: yes
MA S&R: 20 & 200
Stochastic turn/crossover above 80%: yes
AO pullback >0= 85: yes
Price Pullback Fib >0.382:
Next Earnings date: 8/26
Increasing EPS: beat
Increasing Rev: missed
www.estimize.com
Short float: 8%
shortsqueeze.com
*stop 1 atr below swing low.
** first price target is 50% the move from entry price to previous high.
***No Biotech
**** Only short if price is below 50 and/or 200 ma
Any feedback is welcomed! Thx
Cost basis: 29.57
Stop:
First price target:
I think the movement will continue within the current trend.I think the movement will continue within the current trend.
Very similar patterns.To hold the share all the time, until the EMA 50 line is up-directed. Now you should expect crossing purple and black lines. From my point of view, this would be considered normal development.
For those looking for the best point to open a long position.I think it should be done on the rebound from the EMA 50.
BBY: Selling ResumingBBY seems to be resuming it's slide here. Two relatively big volume down days with the price under the moving average ribbon and the MACD crossing negatively is a precursor for further downside action. I am expecting the stock to reach the 23 area at the very least.
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Strong rise will mean the formation of a double bottom.I'm waiting for the rise to three or four percent. Of course, it has to start higher than 22.
BBY - Broke significant support / still shortMonthly pattern makes it even more significant. candle is not finish and might come back so keeping an eye on SL, Targets 1&2 and maybe deeper but hard to say from here, and hard to believe also, we'll see.
BBY Bear FlagBest Buy Co., Inc. (NYSE:BBY) has a classic daily bear flag. This signals a short in this area. Downside target is $36.25 and $30.00.
Best Buy BBY is AT SUPPLY levelsBest Buy BBY has a 14.45 Billion Mkt Cap. Revenues are FLAT over the past few years:, hovering around 50 Billion.
Earnings are just over $1 billion over 4 years thru 11/2/13, which is a measly 2% return on investment per year had you purchased the entire company 4 years ago for $14B.
There are 349 million shares outstanding and a short position at Jan 31 was 34.7 million shares or 10% of the shares. Now it is down to 15.8 million shares. Even though the stock trades heavily, 19 million shares have been covered at a huge loss and provided at least some of the fuel for the rally.
There is a topping pattern taking place and it may take longer to form but I am willing to take a chance, even ahead of the holiday season. Any short-term weakness though and I will be covering.
$42.27 last, target $38 initially. Stop $45.50 initially.
Cheers.
11:54AM EST, December 5, 2013
LONG BBYBBY is in an uptrend with a good pullback along with price action which indicates more buyers coming in to buy this stock at a cheap price in the pullback to push the stock higher
Best Buy Co., Inc. (NYSE:BBY) Puts In A Major Top On Upgrade Best Buy Co., Inc. (BBY) was upgraded today by Oppenheimer today. The firm gave it an outperform rating with a $50 price target. The top is now in the retailer in my opinion. First, who in the world would upgrade a stock that is already up 250% in the last year? Where was the upgrade when it was trading under $12.00 per share? This is just insanity and classic chasing by an analyst who was late to the party. If you look at stocks like Apple Inc, you can clearly see when the upgrades come at epic highs it marks a top in the stock.
Next, the technical chart is not only extremely overbought, but has just filled a major gap. This represents a major level for a pull back that should begin as early as tomorrow. Lastly, for those that have learned the PPT Methodology, please note the daily time count. Just another signal the stock is ready to pull back.
Best Buy Co. has had a great run. I am not looking to take anything away from it. I am just recognizing that the stock is ready to pull back over the next few months.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
