OptionsHouse

Options Trading News

November 29, 2013  Fri 9:32 AM CT

YHOO: SEE CHART GET CHAIN FIND STRATEGIES
Yahoo hit another new high today, and traders are positioning for even more gains in coming weeks.

About 3,000 November Weekly 36.50 calls that expire today were sold for $0.80 to $0.44, while roughly the same number of December Weekly 37 calls expiring on Dec. 6 were bought for  $0.52 to $0.76, according to optionMONSTER's Heat Seeker tracking system. Volume was below previous open interest in the November contracts but above it in the December strike, indicating that long positions are being rolled forward.

The traders are essentially buying another week for YHOO to rally further by the end of next week. But the new long calls, which will track the share price closely because they are in the money, will lose value quickly if the stock loses its upward momentum.  (See our Education section)

YHOO is up 0.57 percent to $37.17 in morning trading after hitting $37.35 a bit earlier, its highest price since January 2006. The Internet stock has been trending steadily higher for the last year, nearly doubling in that time.

Overall Yahoo calls are outpacing puts by more than 2 to 1 so far today.
Share this article with your friends


Related Stories

YHOO

Yahoo draws downside position

May 6, 2015

The Internet company is down sharply since reporting earnings on April 21, and shares fell below their 50- and 200-day moving averages last week.

OptionsHouse

Premium Services

Education & Strategy

Basics of synthetic positions

Before we get into the 6 basic synthetic positions, there are some basic principles that are necessary to review and make it easier to understand Synthetic Positions. By clearly understanding these concepts, Synthetic Positions become rather easy...

View more education articles »