Best Buy (BBY) Tumbles!! Up 12% and Moving in the Right Direction!!

Best Buy (BBY) gave a lot of it back today. There was a huge 25% jump the other day on the speculation that Best Buy had the buyers to take it private. The smart money started betting against the buyout right away. That 25% dropped to 13% later that day as it started to sound to good to be true. 

I made the call after that jump that BBY would be back to $18 soon once the hype died down. Got a few more cents to go, but it looks like I was right. On news today that the buyout is beginning to fall through. BBY gave back the rest of the gains. Falling to $18.50 just a short way from my target. 

The $20 Put option jumped nearly 30% today as it has become clear that the stock will not be worth the $24 or $26 dollars that people were hoping for a few weeks ago. 

I will be hanging on to the option for another few weeks as I wait for it to find a bottom under $18. There seems to be a support level around the $17 dollar range and if it hits that level I may bet on the up side. Until then enjoy the ride down! 

I'm up about 12% on this trade in just a few weeks, think i'll hit 15% before the week is out. 

I'll let you know how it goes.

Thanks for reading!

Straight from the Chart 

Disclaimer:
Just to be clear, nothing that I'm posting on this blog is in any way advice that should be followed by anyone else. All investment decisions should be made carefully by all individuals taking into account their own financial situation and appropriate levels of risk. Do not take anything I say for anything more than it is, opinion, speculation, and woefully undereducated guesses as to how I think a few stocks are going to perform.