Well most of us shorts do not think a buy out is going to happen. Should it happen , it will be for less than 20 dollars. So at this point the downside is 4.00. On the other hand, without a buyout BBY is destined to be under ten dollars very soon and could easily go the way of circuit city in the not too distant future. BBY used to be busy every time I went in there. Now there are more employess working than customers more often than not. Their niche in the market place is as an overpriced electronics store and it is too late to change their business model now. Any TV they sell can be purchased much cheaper on the internet. So to answer your question, the downside to shorting is 4,00 and the upside to staying short is 15.21.