Friday November 20, 09:11 PM
STOCKS NEWS US-Yahoo option volume pops up
Stocks on the move
Real (Frankfurt: BJU.F - news) -time Equity news
U.S. stock market report
1555 ET 20Nov2009 Yahoo (NASDAQ: YHOO - news) option volume swells, calls active
------------------------------------------------------------------------------
Several option plays in Internet giant Yahoo Inc helped send its
option volume to four times the norm. About 99,000 calls and 34,000 puts
traded, according to Trade Alert.
Its shares fell 1.22 percent to $15.42. Two different strategies were in
play, wrote Interactive Brokers Group option analyst Caitlin Duffy in a note. A
large volume sold strangle in the January 2011 contract suggests shares would
remain stagnant through expiration, she said. The trade involved the sale of
20,000 puts at the Jan $12.50 strike for $1.10 each, and the sale of 20,000
calls at the Jan $17.50 strike for $1.65 apiece. The investor retains the gross
premium of $2.75 per contract if shares stay within the confines of the two
strikes described through expiration. A large credit spread was initiated in
the same January contract. It appeared 24,000 calls were sold at the $20 strike
spread against the purchase of the same number of calls at the $30 strike. The
trader gets a net credit of 87 cents as long as shares stay beneath $20.
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
