Most Active Weekly Options: Yahoo! Inc. (YHOO)

Yahoo! Inc. touched a decade-plus high earlier

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Published on Oct 27, 2014 at 11:42 AM
Updated on Apr 20, 2015 at 5:09 PM

The 20 stocks listed in the table below are the S&P 500 Index (SPX) components that have attracted the highest weekly options volume during the past 10 trading days. Names highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name of notable interest today is Yahoo! Inc. (NASDAQ:YHOO), where weekly calls are being targeted.

Most Active Weekly Options Table

As we approach midday, Yahoo! Inc. options are trading at a nearly 30% mark-up to typical intraday levels. Moreover, weekly calls are in focus, making up eight of the 10 most active strikes. The weekly 11/28 44-strike call has seen the most action so far -- largely thanks to a 10,000-contract block that was exchanged just minutes ago, and appears to be tied to stock.

Meanwhile, the next most active option is the weekly 10/31 43.50-strike put, where roughly 6,900 contracts are on the tape. The majority crossed at the bid price, implied volatility is higher, and volume outstrips open interest, collectively suggesting sell-to-open activity -- a portion of which is confirmed by data from the International Securities Exchange (ISE). In sum, these put writers expect YHOO to maintain its perch atop $43.50 through the end of this week, when the weekly contracts expire.

On the charts, Yahoo! Inc. (NASDAQ:YHOO) has added 2.5% so far to trade at $44.60, and earlier tagged a new 14-year high of $44.64. As such, delta on the put has plummeted to negative 0.23 from negative 0.49, meaning the options market is giving the put a less than 1-in-4 chance of being in the money at expiration.


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