BBY

Income Masters Trade Alert: BBY, XBI

I am recommending we roll our Best Buy (BBY) and SPDR S&P Biotech ETF (XBI) puts. We are going out two weeks due to next week’s Federal Reserve meeting. While the Fed is widely expected to raise rates 0.75%, the market could move sharply in either direction based on the actual size of the rate…

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Income Masters Trade Alert: BBY

I am recommending we roll our Best Buy (BBY) put out one week to generate more income. We have a large net debit on the position. But the company’s recent earnings report convinced me that demand for the retailer’s products has stabilized after a post-pandemic slowdown. Therefore, I want to continue to trade the stock.…

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Income Masters Trade Alert: BBY

The protective put we purchased on Best Buy (BBY) to hedge against earnings risk is on track to expire worthless. The stock rallied following the company’s earnings beat despite a 13% year-over-year sales decline in the fiscal second quarter. Management acknowledged the challenges it faces ahead and said it anticipates a sharper decline in same-store…

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Income Masters Trade Alert: BBY

Best Buy (BBY) is expected to announce earnings tomorrow. The put we sold is in the money, although it does not expire until Sept. 9. Rather than close the position and re-enter it after earnings, I am recommending we buy a protective put to hedge the position. Ideally, Best Buy will meet or exceed analyst…

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Income Masters Trade Alert: BBY

Best Buy (BBY) has shown strength over the past month, as big-box retailers have signaled in recent earnings reports that the worst of it may be behind them. I am recommending we roll our put out one week to generate more income and reduce our net debit on the position. Note that the company is…

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