BBY took a huge dive early this morning falling 10% in early morning trading. It has quickly rebounded and has gained 6% of it back. The 12% gains from yesterday quickly turned into 32% this morning as I was able to exit my $20 PUT option at the bottom of the 10% drop.
This is my favorite kind of trade. Calling the bluff on wild rumors and speculation. Best Buy needs a miracle, not an over-zealous founder trying to convince the public he has the financial backing to take Best Buy private. This stock is toxic and financiers are scared of losing their shirt on it. With the new CEO that has ZERO retail experience on top of that, Best Buy probably has a long way to fall.
I sold my PUT option this morning to lock in solid gains. As one of my favorite blowhards, Jim Cramer, likes to say "bulls make money, bears make money, pigs get slaughtered". Don't get greedy with solid gains. I'm in this for quick in/quick out gains. Holding for too long in this market is asking for trouble. Options trade on momentum, get out while the momentum is in your favor.
Thanks for reading!
Straight from the Chart
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.
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.
