Option trade idea on YHOO
- Thread starter hajimow
- Start date
Update:
YHOO has gone up from the time that I called it a short. I am still shorting it and at the same time selling PUT to maximize the profit. This is the same YHOO which was traded at $14 3 months ago. These are the last days of the run up. No stock goes up or down for ever. I also know two hedge funds are shorting it.
YHOO has gone up from the time that I called it a short. I am still shorting it and at the same time selling PUT to maximize the profit. This is the same YHOO which was traded at $14 3 months ago. These are the last days of the run up. No stock goes up or down for ever. I also know two hedge funds are shorting it.
What price did you short YHOO at?
Any plans to cover?
http://finance.yahoo.com/q/bc?s=YHOO&t=5d&l=on&z=l&q=b&c=
http://www.schaeffersresearch.com/m...ig+and+bank+of+america/default.aspx?ID=113571
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Even with YHOO reaching another annual trading high today, option players are assuming a bearish course of action. The December 16-strike put has seen 4,800 contracts trade today (easily outpacing open interest), and 99% of the volume has changed hands at or near the ask price. These put buyers are betting on a pullback in the shares between now and December 21, as the breakeven point (at expiration) is $15.85, or the strike price less the average premium paid ($0.15 per contract).
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Even with YHOO reaching another annual trading high today, option players are assuming a bearish course of action. The December 16-strike put has seen 4,800 contracts trade today (easily outpacing open interest), and 99% of the volume has changed hands at or near the ask price. These put buyers are betting on a pullback in the shares between now and December 21, as the breakeven point (at expiration) is $15.85, or the strike price less the average premium paid ($0.15 per contract).
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My Dec puts are deep in the reds: -32% 
But I still think it can turn to a profitable trade,
even about +50% profit is IMHO realistic if two conditions are met:
1) IV rise from now 27% to 30% in the next 2 weeks
2) drop of YHOO by 2 or more %
and both are realistic I think...
just playing with my options calculator...
But I still think it can turn to a profitable trade,
even about +50% profit is IMHO realistic if two conditions are met:
1) IV rise from now 27% to 30% in the next 2 weeks
2) drop of YHOO by 2 or more %
and both are realistic I think...
just playing with my options calculator...
What exactly is your YHOO trade?
Did you mean to say you need a drop of 2 % or 2 points???
Did you mean to say you need a drop of 2 % or 2 points???
I have only the Puts (one slightly ITM strike and the other is OTM, bought via secondary market, ie. YHOO Puts issued by a European bank, UBS, but the development is almost 1:1 to the US quotes (after currency conversion).
And re the underlying (YHOO): I mean percent, not points.
To be clear: both conditions must be met: IV rise _and_ stock drop... only then will it work for me...
If IV stays the same then stock has to drop at least 3% or so for break even...
I'm confused.
You said your puts are in the red by 32% and you only need the stock to drop 2 - 3% to break even?
Isn't a 2 % drop in YHOO only about $0.34 - $0.35.
You said your puts are in the red by 32% and you only need the stock to drop 2 - 3% to break even?
Isn't a 2 % drop in YHOO only about $0.34 - $0.35.