Best Buy (28.01)

The 26.82 downside target we were using caught the so-far low of the week within a single penny, allowing us to short two Feb 27.5 puts at the best price of the day, 1.90. This makes us long the Feb 30-Feb 27.5 put spread twice (or a multiple thereof) for a net credit of 1.30 per. The worst we can do at expiration is come away with a profit of $2.60 with the stock trading 30 or higher, but there is potential to make as much as $760 with BBY anywhere below 27.50. Since this position can’t lose, we’ll simply let it ride.