Goldman Sachs' Take On BBY Options

Goldman Sachs is recommending closing short June $33 Call positions in Best Buy BBY at $0.71 (ask) (2.4%, stock $29.98). “We recommended selling these options at $1.26 (4.0%, stock $31.42) on March 23, as in our view, the implied volatility for the calls was elevated into earnings,” Goldman Sachs writes. “Options were implying a +/-10% move vs. 8 quarter median move of +/-7%, and our analyst did not expect the company to have such a dramatic move. With earnings passed, shares down 4.6% from our trade recommendation, and volatility in June $33 calls down from 34% on March 23, we recommend closing this trade. The next catalyst for BBY is their April 14 Analyst day.” Best Buy closed Thursday at $30.13.