This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Yahoo! Has Room to Grow

You can gain a greater understanding by looking at the price chart, observing the new highs followed by a retracement, and again followed by a new high. Stocks in an accumulation phase never go straight up and can remain in the current pattern for years.

Watch for an entrance near $24.50 or lower as a starting point to add to or initiate a position. You can also use options to reduce your risk through hedging. If Yahoo! reaches our entry level, look to sell a July $24 strike put for about $1. Your overall risk is 5% lower and if Yahoo! shares continue to decline without a bounce, your cost basis will only be $23 instead of $24.50.

If Yahoo! continues to climb, you limit your profit to only about $1 a share, but that's hardly anything to feel regretful about, considering your 4% gain in about six weeks.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
AAPL $131.39 0.00%
FB $80.48 0.00%
GOOG $542.51 0.00%
TSLA $245.62 0.00%
YHOO $43.68 0.00%


DOW 18,285.74 +0.34 0.00%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs