Best Buy near long-term resistance... appears to be a good short. $40 has repeatedly been a major resistance point for Best Buy historically, in year 2000, 2002, 2003, and 2004. This price point also served as minor support in 2008. Notice too, that long-term uptrend line around $18/share was never breached. While Best Buy "reported" EPS that "beat estimates" of $1.41/share, this excluded restructuring/layoff charges of more than $100Mln, which would have caused them to miss estimates.
Even with their "earnings beat", earnings still fell 6% YoY and are expected to be flat-to-down 10% over the next year. At a current P/E of 13.2x and earnings in a decline and unemployment continuing to rise, there are few positive catalysts for Best Buy. Best Buy may gain market share from Circuit City's implosion, but in the midst of a major downturn this will be offset by weaker consumer spending and credit contraction.
At the very least, selling near-term $42.50/$45 puts for a 1-2% premium seems like a safe bet.