Yahoo! Inc. (YHOO) Weekly Call Volume Explodes

Yahoo! Inc. (NASDAQ:YHOO) will report earnings after tonight's close

by Alex Eppstein

Published on Apr 21, 2015 at 3:04 PM
Updated on Apr 21, 2015 at 3:06 PM

Yahoo! Inc. (NASDAQ:YHOO) is hovering near breakeven this afternoon at $44.63, after the company agreed to add a termination clause to its search partnership agreement with Microsoft Corporation (NASDAQ:MSFT). Meanwhile, in options land, intraday volume is running at 1.6 times what's expected at this point in the session.

The weekly 4/24 series is extremely popular, accounting for six of the 10 most active YHOO strikes. Seeing potential buy-to-open activity are the weekly 4/24 45-, 45.50-, 46.50-, 47-, and 47.50-strike calls, as speculators wager on post-earnings upside for shares of the Internet issue through the end of the week -- when the contracts expire.

Speaking of which, YHOO is scheduled to tell all in less than an hour, once the closing bell sounds. However, the stock's performance in the session after the firm reports earnings is quite mixed, with the shares advancing just three times, looking back eight quarters.

Technically speaking, Yahoo! Inc. (NASDAQ:YHOO) has struggled in 2015. The stock has dropped more than 11% year-to-date -- though it continues to benefit from underfoot support at its ascending 40-week moving average.

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