YHOO trades should get exciting this week

Discussion in 'Stocks' started by hajimow, Nov 6, 2011.

  1. AH on Friday there were lots of news that it seems the deal is imminent. Considering recent stock's price drop because of two factors (1- market drop and 2- a rumor last week that yhoo might consider other avenues than selling) I believe it is wise to go long YHOO this week based on recent news.
     
  2. Aren't you long to the hilt?
    I am long too, but I tihnk you are too optimistic.
     
  3. I am bullish through shorting PUTs. I have over 200 contracts naked PUT 15 and 16 for Nov and Dec. I am a kind of protecting myself this way. I know many people would disagree with me. If there is a buyout of say $30, I will get only my Puts premiums. I believe the best strategy is Jan 2012 rist reversal.
     
  4. I have the following trade on:

    Long YHOO. Short Jan12 12.5 20 strangle. 1up. View: asian stocks worth about $12/share (us business worth zero). Limited upside to 20. I got 1.5 for the strangle so that gives me minor cushion on a weak selloff.
     
  5. Up 2% in pre-market.

    Rumor is that Facebook also might be interested.

    BBC TV on financial section: some European companies also have an eye on YHOO.
     
  6. My prediction is that we hould see 17 by Friday 11/11/11 which is weekly option expiry day if no deal happens till then.
     
  7. THAT'S MY BIRTHDAY! It would be a nice present.
     
  8. Happy BD :)

    A good speculative trade on YHOO:

    Buy 18-19 Nov 18 Call spread for a debit of 5 cents.

    If YHOO goes above 19 by Nov 18 because of a buyout, your 5 cents would be $1. An increase of 2000%

    You have to pay about 1.5 commission so you are actually paying 6.5 cents. 10 call spread would cost you $65.
     
  9. Thanks.

    And I think that any takeover is going to be at a muted price.
    But I do still think it will get taken over unless Jerry Yang has a brain fart. He's destroyed more shareholder value needlessly than any other executive.

    I don't believe in such speculative trades. Generally betting on takeovers is a tough proposition.
     
  10. I don't do that trade either. That is too speculative but sometimes those trades pan out and if you do it a good size, will turn around your financial life.
     
    #10     Nov 8, 2011