Yahoo....

S

Slim Harpo

Yahoo reports earnings after the close tomorrow and the options have been very very busy today.....I just recently starting watching Yahoo and just have a gut feeling that they are going to surprise on the upside tomorrow so I did purchase some calls on it...

Anyone here trade Yahoo or have any opinions on it and on their earnings tomorrow?
 
It doesn't look like the market is agreeing with you on this. The stock is a couple of points off the early June highs. Although, a surprise could push it easily past 39. I have on a diagonal, aug/sep 37.5/40 call spread. The stocks recent vol is well below the IV. The 37 line seems expensive at a 35 vol. so look for that to drop 5 to 10 points Wednesday.
 
Quote from Trajan:

I The stocks recent vol is well below the IV. The 37 line seems expensive at a 35 vol. so look for that to drop 5 to 10 points Wednesday.
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Trajan:

Excuse me for the question but what does IV stand for ?

Thanks!
 
Quote from Trajan:

It doesn't look like the market is agreeing with you on this. The stock is a couple of points off the early June highs. Although, a surprise could push it easily past 39. I have on a diagonal, aug/sep 37.5/40 call spread. The stocks recent vol is well below the IV. The 37 line seems expensive at a 35 vol. so look for that to drop 5 to 10 points Wednesday.
More...

Thanks for your input.
 
Quote from Trajan:

It doesn't look like the market is agreeing with you on this. The stock is a couple of points off the early June highs. Although, a surprise could push it easily past 39. I have on a diagonal, aug/sep 37.5/40 call spread. The stocks recent vol is well below the IV. The 37 line seems expensive at a 35 vol. so look for that to drop 5 to 10 points Wednesday.
More...

Trajan:

Thank you for your input.

I have a question which has been bothering me for a few days.

If you know a stock like YHOO is so weak going into an earnings announcement why would you not buy a put, using the same
stop loss and profit target than you would using a spread ?

Is it because you really don't care which way the stock moves, all you are looking for is to capture premium ? I don't do spreads or strangles or butterflies or anything of that nature. I tried it but it is not for me.

Still I think that if you know that stock is so weak and can predict such a move like you did, wouldn't a naked put be a better play ?

Just curious.

Thanks !
 
Quote from optionpro007:

Trajan:

Thank you for your input.

I have a question which has been bothering me for a few days.

If you know a stock like YHOO is so weak going into an earnings announcement why would you not buy a put, using the same
stop loss and profit target than you would using a spread ?

Is it because you really don't care which way the stock moves, all you are looking for is to capture premium ? I don't do spreads or strangles or butterflies or anything of that nature. I tried it but it is not for me.

Still I think that if you know that stock is so weak and can predict such a move like you did, wouldn't a naked put be a better play ?

Just curious.

Thanks !
More...


don't sell a naked put if you think yhoo is weak and going lower.. ... do a capri put, or bikini spread!
 
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