Trade Idea - Long Call Financed with Put Spreads on BBY

Disclaimer: The trades discussed in this blog reflect the author's personal strategies and decisions. These are not financial advice and should not be considered recommendations to buy, sell, or hold any financial instruments. The author is not a licensed financial advisor. Options trading carries significant risk, and readers should perform their own research or consult a qualified financial advisor before making any investment decisions. Past performance does not guarantee future results.

I recently opened a bullish position on Best Buy (BBY) using a creative options structure designed to capitalize on a move higher while keeping capital exposure tight and defined. It’s a hybrid setup that finances a long call with a put spread, resulting in a net credit with a high probability of profit.

What I like of this trade is that it leans bullish without committing to owning shares and offers a great risk-reward skew. With BBY currently trading just under $70 and showing solid technical support near $64.50, this setup made sense to me.

The Trade

Here’s the structure, all with options expiring in mid-August:

• Buy 2 $60 Puts
• Sell 2 $65 Puts
• Buy 1 $80 Call

So, I have this P&L:

The short $65 puts help finance both the long $80 call and the long $60 puts that cap downside risk. Altogether, I collected over $100 in credit for entering the position.

The breakeven on this trade is effectively around $64.53. That means as long as BBY stays above that level through expiration, I either profit or break even. Below that, losses are limited and defined thanks to the long $60 puts. Upside is where things get exciting - if BBY makes a move toward analysts' price targets near $80, that call could pay off nicely.

Why This Made Sense

BBY has held the $64.50 level several times recently, which adds confidence to the downside cushion. On top of that, market sentiment has tilted increasingly bullish, with multiple analysts placing their price targets in the $78–$82 range.

The price chart of BBY looks like this:

This trade showed up via one of our predefined scans - specifically the “Financing Long Call with 2 Put Spreads with High Probability of Profit” scan. These setups don’t come around every day, and when they do, they often represent well-structured, asymmetric trades that align with directional conviction.

I like how this balances protection and opportunity. It’s a nice way to express a bullish view without overcommitting capital or leaving myself exposed to a steep drop. The worst-case scenario is clearly defined, while the upside remains open-ended above the $80 strike.

For transparency, you can find all my trades in the public trade log.