Yahoo! Inc. (NASDAQ: YHOO) has much interest because of a possible buyout, asset sales in Asia, and a continued restructuring. With shares down four cents on the day and under $16.00 it might not seem like much is happening. Then go look at the Options trading and it turns out that there is a flag out in the JANUARY 2013 expirations.
In that January expiration, we have seen some 18,002 contracts trade hands in the $20.00 CALLS trade against a prior open interest of 45,563 contracts. Also in January 2013, there have been 14,091 contracts of the $12.50 PUTS traded so far today against a prior open interest of 51,446 contracts.
The last price seen on the PUTS was at $0.89 and the last price on the CALLS was at $0.60. We have not seen elevated traded in JAN-2014 and we have to come down to the closer month of July 2012 CALLS to find any two contracts with over 10,000 contracts (in the $16 and $19 strike price calls).
Whatever the bet is (or the hedge is), it is not a bet that is likely coming in tomorrow.
JON C. OGG