Yahoo! Inc. (YHOO) Option Bull Buys More Time

It looks as if one Yahoo! Inc. (NASDAQ:YHOO) option trader rolled her bullish May bet out to the June series

Apr 8, 2016 at 11:33 AM
facebook X logo linkedin

Yahoo! Inc. (NASDAQ:YHOO) is reportedly giving firms an extra week to bid on its businesses, extending the deadline to April 18 from April 11. The list of potential suitors for YHOO is long, and apparently includes such notable names as Verizon Communications Inc. (NYSE:VZ), Alphabet Inc (NASDAQ:GOOGL), and Time Inc (NYSE:TIME). Meanwhile, in the stock's options pits, it looks as if one trader is giving her bullish position a little more time, as well, with a big roll eyed in YHOO's May and June series.

Taking a quick step back, around 56,000 YHOO call options have changed hands today. This is about three times what's typically seen at this point in the day, and nearly 10 times the number of put options that have traded.

A large portion of today's volume is the result of a 10,000-contract block of May 35 calls and an 8,758-contract lot of June 35 calls that changed hands simultaneously. According to Trade-Alert, it looks as if this action is the result of one trader rolling her in-the-money May calls out to the June series.

Widening the sentiment scope reveals call buying has been a popular strategy on YHOO in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for instance, YHOO's 10-day call/put volume ratio of 5.43 sits just 9 percentage points from a 52-week peak.

Echoing this call-skewed slant is YHOO's Schaeffer's put/call open interest ratio (SOIR) of 0.33. Not only does this show that calls more than triple puts among options expiring in three months or less, but it ranks lower than 96% of all comparable readings taken in the past year. In other words, short-term speculators have rarely been as call-heavy toward YHOO as they are now.

On the charts, the stock has been rallying since hitting a two-year low of $26.15 in mid-February, with shares of Yahoo! Inc. (NASDAQ:YHOO) up almost 39% to $36.24. What's more, YHOO is comfortably on pace to notch a second straight weekly close north of its 50-week moving average -- a feat not accomplished since last May.


Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI