Option trade idea on YHOO

B the way, my price target to cover is 15.90 to 16.10. Expect for an at least 50 cents correction. YHOO is not a $14 stock but the current price is also overvalued.
 
Really, I don't believe YHOO made any profits, they used some "creative bookkeeping".
I expect them to go down the next 2 months.
BTW, same with FB...
 
Your accuracy of yahoo stock is impressive. Would you please explain how you arrive at your conclusion of the turn of the price?

Thanks.
 
Quote from mutluit:

Really, I don't believe YHOO made any profits, they used some "creative bookkeeping".
I expect them to go down the next 2 months.
BTW, same with FB...
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Your post seems that you are disagreeing with me but actually you are saying the same thing. YHOO made profits but it was almost the same as the last quarter. They added the sale of Alibaba profit to their earnings so it looked more but actually Alibaba sales effect on YHOO share was done about two months ago so the recent stock run-up is a kind of double dipping. Their profit was a little higher and that is because of the recent layoff and not because of business growing. YHOO is a good company and I believe we will see YHOO at 15.50 again because of correction in the stock or the market but I will cover at 15.90-16 range. Once again at current price of 16.75, it is a pure short.
 
Quote from rsong18:

Your accuracy of yahoo stock is impressive. Would you please explain how you arrive at your conclusion of the turn of the price?

Thanks.
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Thanks. Mostly it is because I almost solely trade YHOO. That is why I can feel the stock. Its price movement is in my blood now.
 
I agree with that you said, except the following passage:
Quote from hajimow:
Option trade idea is to sell PUT and Call 16 for November.
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Can you pls elaborate what you mean here?
Do you really mean "sell puts", or do you rather mean "close your puts"?
And: what effect has "sell PUT and Call"? Do you mean the premium credit?
Confused....
 
Quote from mutluit:

I agree with that you said, except the following passage:
Can you pls elaborate what you mean here?
Do you really mean "sell puts", or do you rather mean "close your puts"?
And: what effect has "sell PUT and Call"? Do you mean the premium credit?
Confused....
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Ya that didn't make sense... you would be neutral selling the straddle if you did that
 
If you don't mind, would you please explain what information do you collect about yahoo, fundamental and technical side? Additionally, how long does it take to know it that well?

Thanks.
 
Quote from mutluit:

I agree with that you said, except the following passage:
Can you pls elaborate what you mean here?
Do you really mean "sell puts", or do you rather mean "close your puts"?
And: what effect has "sell PUT and Call"? Do you mean the premium credit?
Confused....
More...

Yes I meant sell PUT and Call. You sell both to maximize your gain. Lets assume you get 80 cents altogeher. Then you are safe upto 15.20 and since I believe YHOO will not go that low, you are safe. In case YHOO does not go down and move up a little, you can use PUTs money towards your loss (it gives you more cushion)
 
Buying PUT makes sense in cases when you believe a stock will substantially go lower. In YHOO case, I don't believe YHOO will go down that much that PUTs become profitable. The rate of time decay for YHOO PUT will be more than the gain by stock's drop.
 
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