Yelp Inc (NYSE:YELP) is pulling back this afternoon, following last week's
M&A-induced run-up. At last check, shares of the business review site are down 2.7% at $48.58. Meanwhile, both calls and puts are crossing at an above-average intraday rate.
The September series is seeing buy-to-open action at its 57.50 call and 48 put. The call buyers are anticipating YELP will bounce back -- and take out $57.50, territory not seen since early February -- by September options expiration. Meanwhile, the put buyers are counting on the stock to tumble south of $48 during the same time frame.
Today's negative price action is more of the same for YELP. Year-to-date, the shares have shed about 11%, and have been testing resistance at their descending 120-day moving average -- a trendline that has ushered the shares lower since last October.
Not everyone has caught on to this downward trajectory, though. In fact, the majority of analysts covering Yelp Inc (NYSE:YELP) maintain a "buy" or better rating on the shares, while the average 12-month price target of $56.26 stands at a nearly 16% premium to current trading levels. Should YELP continue to struggle, a round of downgrades and/or price-target cuts could translate into a fresh wave of selling pressure.