Morgan Stanley Options Volume Surges Significantly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy BBY?
Source: NASDAQ.COM
- Volume Analysis: Morgan Stanley's options trading volume reached 36,058 contracts today, equivalent to approximately 3.6 million shares, representing 40.9% of its average daily trading volume of 8.8 million shares over the past month.
- High-Frequency Options: Notably, the $160 strike put option expiring on February 20, 2026, saw a trading volume of 10,547 contracts today, representing about 1.1 million shares, indicating market interest in this price range.
- Intuit Inc Dynamics: Concurrently, Intuit Inc's options trading volume stood at 16,855 contracts, approximately 1.7 million shares, accounting for 40.5% of its average daily trading volume of 4.2 million shares over the past month.
- Market Trends: The $490 strike put option also attracted attention with a trading volume of 5,307 contracts today, representing around 530,700 shares, reflecting investors' expectations for future market volatility.
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Analyst Views on BBY
Wall Street analysts forecast BBY stock price to rise
12 Analyst Rating
5 Buy
6 Hold
1 Sell
Moderate Buy
Current: 64.870
Low
60.00
Averages
83.33
High
99.00
Current: 64.870
Low
60.00
Averages
83.33
High
99.00
About BBY
Best Buy Co., Inc. is engaged in personalizing and humanizing technology solutions. The Company has two segments: Domestic and International. The Domestic segment comprises its operations in all states, districts and territories of the United States and its Best Buy Health business and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, Geek Squad, Imagine That, Insignia, Lively, My Best Buy, My Best Buy Memberships, Pacific Kitchen and Home, TechLiquidators and Yardbird; and the domain names bestbuy.com, lively.com, techliquidators.com and yardbird.com. The International segment comprises all its operations in Canada under the brand names Best Buy, Best Buy Express, Best Buy Mobile, Geek Squad and TechLiquidators and the domain names bestbuy.ca and techliquidators.ca. The Company’s product categories include computing and mobile phones, consumer electronics, appliances, entertainment, services and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Morgan Stanley Options Volume Surges Significantly
- Volume Analysis: Morgan Stanley's options trading volume reached 36,058 contracts today, equivalent to approximately 3.6 million shares, representing 40.9% of its average daily trading volume of 8.8 million shares over the past month.
- High-Frequency Options: Notably, the $160 strike put option expiring on February 20, 2026, saw a trading volume of 10,547 contracts today, representing about 1.1 million shares, indicating market interest in this price range.
- Intuit Inc Dynamics: Concurrently, Intuit Inc's options trading volume stood at 16,855 contracts, approximately 1.7 million shares, accounting for 40.5% of its average daily trading volume of 4.2 million shares over the past month.
- Market Trends: The $490 strike put option also attracted attention with a trading volume of 5,307 contracts today, representing around 530,700 shares, reflecting investors' expectations for future market volatility.
See More
U.S. Supreme Court to Rule on Trump's Tariff Regime
- Potential Refunds: The U.S. Supreme Court is set to rule on February 20 regarding Trump's tariff regime, with a ruling in favor potentially triggering refunds exceeding $130 billion, significantly reshaping American trade policy.
- Increased Household Tax Burden: U.S. households are projected to face an average tax increase of $1,000 in 2025, rising to $1,300 in 2026, highlighting the direct economic impact of tariffs on ordinary citizens.
- Tariff Revenue Figures: According to CBP data, the U.S. collected over $200 billion in tariffs between January 20 and December 15, 2025, with total customs revenue for 2025 estimated at $264 billion, yielding a net gain of approximately $132 billion after accounting for economic drag.
- Market Reaction: Following Trump's April 2025
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Supreme Court Dashes Hopes for Trump Tariff Refunds
- Legal Challenge Outlook Dim: Supreme Court Justice Ketanji Brown Jackson indicated on CBS that any legal challenge to Trump's recent tariffs would encounter “nuanced legal issues,” suggesting that hopes for refunds are increasingly unlikely due to the complexity involved.
- Market Reaction Swift: On Polymarket, the odds of Trump being forced to refund tariffs plummeted from 39% last week to 28%, reflecting a significant drop in investor confidence regarding the success of any legal challenge and highlighting market uncertainty about future policies.
- Corporate Earnings Outlook Dims: Best Buy (NYSE:BBY) has cut its 2026 guidance, explicitly citing tariff costs as a major factor, and the diminishing possibility of refunds will directly impact its bottom line for the first half of the year, increasing financial pressure on the company.
- GM Faces Rising Costs: General Motors (NYSE:GM), while a domestic company, imports significant components from Mexico, and the continued imposition of tariffs keeps input costs elevated through Q2, adversely affecting the company's overall profitability.
See More
Best Buy Options Analysis and Yield Potential
- Put Option Appeal: Selling a put option at a $57.00 strike price allows investors to collect a 50-cent premium, lowering their cost basis to $56.50, which represents a 16% discount compared to the current stock price of $67.49, making it attractive for those interested in BBY shares.
- Yield Potential Analysis: If the put option expires worthless, the premium would yield a 0.88% return on cash commitment, or an annualized 6.41%, referred to as YieldBoost, highlighting the potential profitability of options trading.
- Call Option Returns: Selling a call option at a $68.00 strike price allows investors to collect a $2.51 premium on the current stock price of $67.49, resulting in a total return of 4.47% if the stock is called away, though it risks missing out on further upside potential.
- Volatility Comparison: The implied volatility for the put option is 62%, while for the call option it is 48%, with an actual trailing twelve-month volatility of 45%, providing critical metrics for investors to assess risk and return, aiding in more informed investment decisions.
See More
JPMorgan Updates Stock Favorites List for February
- New Additions: JPMorgan's February favorites list includes First Industrial Realty Trust, a Chicago-based industrial real estate owner, whose shares have risen nearly 8% over the past year but remain below the 2021 all-time high, indicating relative value and growth potential.
- Improving Fundamentals: Analyst Ken Goldman highlighted that industrial fundamentals are improving, and First Industrial Realty Trust is well-positioned to leverage its substantial development pipeline, thus providing a solid investment opportunity for stakeholders.
- Stocks Retained: JPMorgan maintains its bullish stance on Boeing and Microsoft, despite a sell-off in Microsoft shares due to slight misses in cloud service growth; the bank reiterates its overweight rating, emphasizing the importance of the Azure revenue base.
- Stocks Removed: The bank has removed Best Buy, Burlington Stores, and Regency Centers from its February list, downgrading Best Buy and Regency to neutral while keeping Burlington at overweight, reflecting a cautious outlook on these retailers.
See More
Best Buy Faces Short-Term Challenges Ahead
- Rating Downgrade: JP Morgan analyst Christopher Horvers downgraded Best Buy from Overweight to Neutral and cut the December 2026 price target from $99 to $76, reflecting concerns over slowing sales and limited visibility on long-term recovery for the retailer.
- Earnings Outlook Cut: Horvers reduced adjusted EPS estimates for fiscal 2025 from $6.45 to $6.23 and for fiscal 2026 from $7.09 to $6.36, primarily due to a tougher fourth-quarter setup and fading category tailwinds impacting performance.
- Sales Forecast Dims: For Q4 fiscal 2025, Horvers models a -3% comparable sales decline, with a 21.0% gross margin and 4.9% operating margin, projecting EPS at $2.40, all below Street expectations, indicating weaker-than-anticipated consumer electronics demand.
- Increased Competitive Pressure: Horvers notes a narrowing price-performance gap between value and premium electronics brands, which could pressure ticket size and mix, while TVs and appliances face challenges due to slow housing turnover limiting recovery.
See More
Morgan Stanley Options Volume Surges Significantly
- Volume Analysis: Morgan Stanley's options trading volume reached 36,058 contracts today, equivalent to approximately 3.6 million shares, representing 40.9% of its average daily trading volume of 8.8 million shares over the past month.
- High-Frequency Options: Notably, the $160 strike put option expiring on February 20, 2026, saw a trading volume of 10,547 contracts today, representing about 1.1 million shares, indicating market interest in this price range.
- Intuit Inc Dynamics: Concurrently, Intuit Inc's options trading volume stood at 16,855 contracts, approximately 1.7 million shares, accounting for 40.5% of its average daily trading volume of 4.2 million shares over the past month.
- Market Trends: The $490 strike put option also attracted attention with a trading volume of 5,307 contracts today, representing around 530,700 shares, reflecting investors' expectations for future market volatility.
See More
U.S. Supreme Court to Rule on Trump's Tariff Regime
- Potential Refunds: The U.S. Supreme Court is set to rule on February 20 regarding Trump's tariff regime, with a ruling in favor potentially triggering refunds exceeding $130 billion, significantly reshaping American trade policy.
- Increased Household Tax Burden: U.S. households are projected to face an average tax increase of $1,000 in 2025, rising to $1,300 in 2026, highlighting the direct economic impact of tariffs on ordinary citizens.
- Tariff Revenue Figures: According to CBP data, the U.S. collected over $200 billion in tariffs between January 20 and December 15, 2025, with total customs revenue for 2025 estimated at $264 billion, yielding a net gain of approximately $132 billion after accounting for economic drag.
- Market Reaction: Following Trump's April 2025
See More
Supreme Court Dashes Hopes for Trump Tariff Refunds
- Legal Challenge Outlook Dim: Supreme Court Justice Ketanji Brown Jackson indicated on CBS that any legal challenge to Trump's recent tariffs would encounter “nuanced legal issues,” suggesting that hopes for refunds are increasingly unlikely due to the complexity involved.
- Market Reaction Swift: On Polymarket, the odds of Trump being forced to refund tariffs plummeted from 39% last week to 28%, reflecting a significant drop in investor confidence regarding the success of any legal challenge and highlighting market uncertainty about future policies.
- Corporate Earnings Outlook Dims: Best Buy (NYSE:BBY) has cut its 2026 guidance, explicitly citing tariff costs as a major factor, and the diminishing possibility of refunds will directly impact its bottom line for the first half of the year, increasing financial pressure on the company.
- GM Faces Rising Costs: General Motors (NYSE:GM), while a domestic company, imports significant components from Mexico, and the continued imposition of tariffs keeps input costs elevated through Q2, adversely affecting the company's overall profitability.
See More
Best Buy Options Analysis and Yield Potential
- Put Option Appeal: Selling a put option at a $57.00 strike price allows investors to collect a 50-cent premium, lowering their cost basis to $56.50, which represents a 16% discount compared to the current stock price of $67.49, making it attractive for those interested in BBY shares.
- Yield Potential Analysis: If the put option expires worthless, the premium would yield a 0.88% return on cash commitment, or an annualized 6.41%, referred to as YieldBoost, highlighting the potential profitability of options trading.
- Call Option Returns: Selling a call option at a $68.00 strike price allows investors to collect a $2.51 premium on the current stock price of $67.49, resulting in a total return of 4.47% if the stock is called away, though it risks missing out on further upside potential.
- Volatility Comparison: The implied volatility for the put option is 62%, while for the call option it is 48%, with an actual trailing twelve-month volatility of 45%, providing critical metrics for investors to assess risk and return, aiding in more informed investment decisions.
See More
JPMorgan Updates Stock Favorites List for February
- New Additions: JPMorgan's February favorites list includes First Industrial Realty Trust, a Chicago-based industrial real estate owner, whose shares have risen nearly 8% over the past year but remain below the 2021 all-time high, indicating relative value and growth potential.
- Improving Fundamentals: Analyst Ken Goldman highlighted that industrial fundamentals are improving, and First Industrial Realty Trust is well-positioned to leverage its substantial development pipeline, thus providing a solid investment opportunity for stakeholders.
- Stocks Retained: JPMorgan maintains its bullish stance on Boeing and Microsoft, despite a sell-off in Microsoft shares due to slight misses in cloud service growth; the bank reiterates its overweight rating, emphasizing the importance of the Azure revenue base.
- Stocks Removed: The bank has removed Best Buy, Burlington Stores, and Regency Centers from its February list, downgrading Best Buy and Regency to neutral while keeping Burlington at overweight, reflecting a cautious outlook on these retailers.
See More
Best Buy Faces Short-Term Challenges Ahead
- Rating Downgrade: JP Morgan analyst Christopher Horvers downgraded Best Buy from Overweight to Neutral and cut the December 2026 price target from $99 to $76, reflecting concerns over slowing sales and limited visibility on long-term recovery for the retailer.
- Earnings Outlook Cut: Horvers reduced adjusted EPS estimates for fiscal 2025 from $6.45 to $6.23 and for fiscal 2026 from $7.09 to $6.36, primarily due to a tougher fourth-quarter setup and fading category tailwinds impacting performance.
- Sales Forecast Dims: For Q4 fiscal 2025, Horvers models a -3% comparable sales decline, with a 21.0% gross margin and 4.9% operating margin, projecting EPS at $2.40, all below Street expectations, indicating weaker-than-anticipated consumer electronics demand.
- Increased Competitive Pressure: Horvers notes a narrowing price-performance gap between value and premium electronics brands, which could pressure ticket size and mix, while TVs and appliances face challenges due to slow housing turnover limiting recovery.
See More
