Yahoo (YHOO) loses a penny to $15.81 and one strategist sells 10,000 Jan 12.5 puts on the Internet giant at 89 cents and 17,500 Jan 20 calls at 57 cents — possibly exiting a trade and/or betting that the stock will stay between $12.5 and 20 through the Jan 2013 expiration. Why not. YHOO has been trading sideways in a narrow range for months and is basically at the same levels today as it was 2 years ago. Separately, it appears Jun 16 – 19 calls spreads are being sold on Yahoo at $1, 9750X on AMEX. It’s possibly closing or a position adjustment. Meanwhile, implied vols in YHOO have eased 1.5 percent to 26 Tuesday and are not far from the 52-week lows of 25.9 set Friday.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.