Unusual LEAPs Options Trading in Yahoo! (YHOO)
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…
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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
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
