The pessimistic forecast from Best Buy Wednesday morning, which sent its shares tumbling in pre-market trading, was foreshadowed by some heavy options activity.
Last Thursday we noted that OptionMonster's Heat Seeker system, which identifies unusual options action, showed that some 22,000 puts had changed hands in the electronics retailer.
Yesterday, the stock closed near its lows of the day, and this morning the shares plummeted after Best Buy lowered its revenue estimates.
Pressuring the stock most was Best Buy's announcement that holiday sales could come in as much as 15 percent lower than expected. Shares opened the regular session down today, though they had traded much lower in the early pre-market, down as much as 15 percent at one point.
Electronics Retail — The Competition:
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.