Market News

October 11, 2016  Tue 12:14 PM CT

A large position is betting that the Yahoo will continues its uptrend through early next year..

optionMONSTER's monitoring system detected the purchase of 3,000 February 46 calls for $1.54 at the same time today. Volume was more than 180 times the open interest in the strike, showing that this is a new position.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

YHOO is down 2.28 percent to $42.92 in afternoon trading but is up 16 percent in the last three months. The Internet company is expected to announce quarterly results after the close on Oct. 18.

Overall option volume is about average in YHOO so far today.

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