BBY Best Buy (28.22)

9060The “Don’t Pass” line looks like an enticing bet here, since Best Buy has doubled in price since bottoming at 16.42 in November. However, the minor-cycle uptrend looks like it still has a little ways to go, to a Hidden Pivot target at 30.75. If and when that number is closely approached, buy two February 30 puts (BBYNF). They should be trading for around 1.30 if the target is hit this week, but I’ll post further guidance if it looks like an adjustment is needed. To be apprised in real time, keep your bulletin launcher switched on. I’ve included a snapshot of my option calculator that shows how I arrived at a price for the puts. The 55 volatility comes from TradeStation’s option analysis page.