OptionsHouse

Options Trading News

November 28, 2012  Wed 9:31 AM CT

YHOO: SEE CHART GET CHAIN FIND STRATEGIES
Calls are surging in Yahoo as shares come off a four-year high reached yesterday.

YHOO is down 1.35 percent to $18.67 this morning. The Internet stock traded as high as $19.16 in yesterday's session and saw its highest close since September 2008. Shares were below $15 going into September.

A trader sold 5,000 January 19 calls for the bid price of $0.62 in volume that was less than the strike's open interest of 81,000, according to optionMONSTER's systems. At the same time, he or she bought 5,000 July 19 calls for the ask price of $1.61 compared with open interest of just 269 contracts, so it is a new position.

The trade could be a roll of long calls from January out to July, which would limit the position's time decay. Or it could be a new calendar spread designed to profit from greater time decay of the nearer-term options and take a maximum profit if YHOO is right around $19 at the January expiration.
Share this article with your friends


Related Stories

YHOO

Investors bet Yahoo is on solid ground

June 15, 2016

A large trade shows support for the Internet company, which reported bullish results on April 19 and is up 9 percent in the last three months.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Know the risks behind covered calls

Selling calls is a popular strategy for both retail and institutional traders, but they typically do it in very different fashions.

View more education articles »