After releasing what was overall not that bad earnings, Best Buy has led the retail sector downward. Lucky for me, I put a collar on the stock, so I wasnt hit too bad, and was able to buy back my call as well as sell the put I had purchased for a gain reducing my overall cost basis to $36. I still think Best Buy is a good long term holding, and yields 1.5% at my cost-averaged price which is meager, but still something. The stock was due for somewhat of a correction, but I believe it should hold above $33.46 which was where it was before jumping after its last earnings report in April. I will be selling a July call on this position sometime next week, I am looking at a $38 July call at about $.80. The new purchase metrics are below:
6/12/2009 -- Bought 100 BBY @ 37.54
6/12/2009 -- Sold To Open 1 BBY July $39 Call @ 1.54
6/12/2009 -- Bought To Open 1 BBY June $35 Put @ 0.6
6/18/2009 -- Bought To Close 1 BBY July $39 Call @ 0.50
6/18/2009 -- Sold To Close 1 BBY June $35 Put @ 1.1
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3660.00
Downside Coverage: None
Possible Max Upside: Unlimited
Annualized Max Upside: Unlimited
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