Retailers are struggling right now, and that includes Best Buy (BBY). However, outside of macroeconomic factors, there is nothing fundamentally wrong with the company.
Best Buy is expected to announce earnings on May 24. If something changes with the fundamental story, we will reconsider our position. But, for now, we’re sticking with it.
Our BBY May Monthly (5/20) 85 Call is on track to expire worthless. I want to avoid earnings risk. So, I will either be recommending we sell our shares before the announcement and get back in after the earnings dust settles or hedge with a protective put.
Current Stock Price: $72.40
Cost Basis: $96.44
Action: Watch call expire worthless