YHOO

Google pondering not a purchase but a finance of purchase to ?

I think this is a negative thing, and with a market up on friday
i will be looking for a position trade on the short side in YHOO,

ill post my entries best i can if anyone is interested.

 

As I said in 2008 YHOO should have taken the buyout offer from MSFT, but no YHOO thought they were going to be worth even more, never happened, looks like yahoo will never see another $40 billion dollar bid ever again.


http://www.elitetrader.com/vb/showthread.php?s=&postid=2053926&highlight=yhoo#post2053926

 

this may be a dud of an idea, but in at .55 short. for first purchase.


should prob mention this is only 5% of what im willing to take on the full trade, will only be adding in a gain situation, and with this lot premarket i have 25 cent or so mental stop im willing to afford, so there is no great indicator thats telling me its down from this exact point.

 

another 500 at .39 , this is intraday trade only by the way.

 

in additional 1000 short at breakeven point, tight stop of 10 cents to puke the trade, markets strong which is a hindrance.

 

Be careful. What would you do if this happens:

YHOO is halted pending a news. one hour later, it opens and bid and ask are
29.99 /30.05 and in a minute it jumps to 31 /31.04

Are you ready for that? Are you sure this will not happen. It won't let you to cover. You will lose 14000 in just that 1K short. Buyout is a fact. WSJ is talking about it. MSFT mentioned in its conference call that they are interested. Alibaba mentioned that they are interested.

All things said, YHOO need some short so it can fly higher.

Note: I am long YHOO through options

 

Actually I believe YHOO might close above $17 today. Now it is traded at 16.60

 

I wouldn't be short this either. I don't think you can lose $15/share, but I think you can lose 2-3 without any chance to cover.

And to make what? 30 cents? 50 cents?

 

I'm mainly a scalper, but do just fine with these types of trades, was a very small loss compared to what size and profit I would have had if it played out in my favour. But I respect your input.

 

A very safe trade on YHOO that might get risky !! is this:

Buy Call spread 13-14 for November for about 0.91. You will make about 8% in 4 weeks. Both are almost deep in the money. Your 13 calls will be called away by the 14 calls.