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Price Break Provides Option Profits in $BBY
In our TNT Options Trading Service on April 22nd, we talked about Best Buy (BBY). We suggested simple targets for $BBY if it should break and make a run either above or below two key flat-lines which were at $73.35 and $72.50, respectively. BBY had struggled to find direction for the two weeks leading into […]
In our TNT Options Trading Service on April 22nd, we talked about Best Buy (BBY).
We suggested simple targets for $BBY if it should break and make a run either above or below two key flat-lines which were at $73.35 and $72.50, respectively. BBY had struggled to find direction for the two weeks leading into our discussion, and there was opportunity for either the bulls or the bears to finally move the stock.
The stock of BBY would provide a quick entry to the upside the very next day, on April 23, as it moved strongly above the $73.35 flat-line we were watching. With the broader market making new all-time-highs, it was important to remember to roll to a lower delta option to lock in profits and reflect the strength of the move towards the end of the day, should the momentum continue.
BBY opened higher on Wednesday with a gap after Jefferies upgraded the stock to a Buy from a Hold and raised their price target for the shares to $88 from $72. This move was a clear opportunity to roll the calls once again, locking in the profits. The momentum would be stifled shortly thereafter, but only after traders had rolled and locked gains to exit the remaining position on discipline and a lack of support at the higher prices in the underlying.
Subscribers took advantage of this opportunity and were able to profit anywhere from 40% to as much as 300% on the upside using discipline and a strategy involving their flat-lines and momentum!