Super Bowl 'Smash-It-Up' Trades

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Super Bowl Trade II: Short Best Buy (BBY)

Circuit City's loss is not their gain

By Michael Shulman

I'll be watching on my 6-year-old big screen -- the one thing I'll have in common with most of the NFL's 1,590 players. I did go to Best Buy (BBY) last week to check out the Super Bowl sales, and I got lots of attention because no one else seemed to be shopping. Analysts have bid up Best Buy since competitor Circuit City announced it was liquidating, and man, are they wrong. There are no complicated products that people can afford requiring sales people to help -- so you can get the Sony flat panels at discount stores.

And even Costco and Wal-Mart say they are having troubles selling big-ticket items. Best Buy is up 40% in the past few weeks but it's time for the shares to go back down again.

Short Best Buy. (BBY). And if you go short BBY, only buy puts.

Next: Super Bowl Trade III