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On CNBC's "Options Action", Mike Khouw said the options volume in Best Buy Co Inc (NYSE: BBY) on Wednesday was four times its average daily options volume. The company reports earnings on Thursday and the options market is implying a move of 9 percent in either direction. The stock normally moves around 6 percent on the event.

Khouw noticed that options traders were buying the weekly 67 puts early in the trading session. Later in the day, there was a purchase of 4,000 contracts of the March 65/62.50 put spread, which is a bet that the stock might drop even more than its implied move.

Posted-In: Mike Khouw Options ActionOptions Markets Media

 

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