is going mobile, and the bulls are sticking their horns out.
The option activity picked up near the end of yesterday’s session, with buyers in the August 20 calls paying $0.98 to $1.07. More than 5,000 traded against previous positioning of just 549 contracts, according to OptionMonster’s tracking systems.
Those callslock in the price investors must pay top buy the stock. The options can generate some nice leverage if Best Buy’s stock rallies, but will expire worthless if it doesn’t move.
Best Buy shares have struggled since January 2011, but yesterday rose 4.65 percent to close at $19.37 after hitting an intraday high of $21.59. There are plans to launch Best Buy Mobile and Format in Five Star stores in China, and management wants to enhance layouts while increasing the global footprint.
In addition, the company's cost-reduction program is intended to generate $800 million in savings by fiscal 2015, including $250 million in fiscal 2013. Best Buy has also raised the dividend for the third time in three years to boost investor confidence in the stock.
Calls outnumbered putsby 25,000 to about 9,000, a reflection of yesterday's bullish sentiment. Total option volume was almost four times average levels.
—By CNBC Contributor Pete Najarian
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