Options: Heavy Call Buying in Yahoo!
By Jud Pyle, CFA, chief investment strategist for the Options News Network
Bullish investors are looking to shout "Yahoo!" for Yahoo!(YHOO Quote) if they collect profits from the rally they expect to see throughout earnings season.
Looking at the Aug. 15 calls, at least one investor expressed bullishness and boosted volume in these near-the-money options. The investor bought 20,000 contracts for $1.10 a piece with the stock at $14.65. The Aug. 15 calls are currently up five cents on the day and are home to current open interest of just 207, suggesting that today's volume will translate as new positions tomorrow.
Shares of the second-most visited Web site (according to Web information company Alexa) have rallied 65% since reaching a 52-week low of $8.95 on Nov. 20, but they are nearly 70% off their 52-week high of $24.64, which Yahoo! reached on July 8, 2008. ...
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