BBY – Best Buy Co., Inc. – Shares of the consumer electronics retailer are up 1.25% to stand at $34.31 as of 11:15 am ET, but earlier rallied as much as 2.9% to touch an intraday and one-month high of $34.86. It looks like a number of options investors are initiating bullish positions on Best Buy today ahead of the firm’s second-quarter earnings report scheduled to be released ahead of the opening bell on Tuesday. One optimistic individual enacted a ratio call spread, buying 3,500 calls at the October $35 strike at a premium of $1.35 each, and selling 7,000 calls at the higher October $37 strike for premium of $0.64 apiece. Net premium paid to establish the spread is reduced to $0.07 per contract. Thus, the investor responsible for the transaction starts to make money if BBY’s shares increase another 2.2% over the current price of $34.31 to trade above the effective breakeven point at $35.07 by October expiration. Maximum potential profits of $1.93 per contract pad the investor’s wallet if the retailer’s shares surge 7.8% to settle at $37.00 at expiration day next month. The overall reading of options implied volatility on BBY is up 4.9% at 42.32% ahead of earnings.