Tony Zhang Is Bullish On Best Buy

Tony Zhang of OptionsPlay said on CNBC's "Options Action" it is time to pick up Best Buy Co Inc BBY shares going into the end of the year. He thinks its chart looks quite weak because the stock broke down below its $105 support level and then failed to return above it. The stock's relative performance to SPDR S&P Retail ETF is also poor, he said.

Despite poor technicals, Zhang wants to take a long position in Best Buy. He likes it because consumer electronics spending is up 29% versus last year, and the company has enough cash to support its dividend and its buyback.

Zhang wants to sell the January $102/$95 put spread for a credit of $2.75. The premium collected is the maximal profit Zhang can make with the trade. His maximal loss is $4.25 and the trade breaks even at $99.25 or 2.65% below the closing price on Friday.