YHOO trades should get exciting this week

H

hajimow

AH on Friday there were lots of news that it seems the deal is imminent. Considering recent stock's price drop because of two factors (1- market drop and 2- a rumor last week that yhoo might consider other avenues than selling) I believe it is wise to go long YHOO this week based on recent news.
 
Quote from hajimow:

AH on Friday there were lots of news that it seems the deal is imminent. Considering recent stock's price drop because of two factors (1- market drop and 2- a rumor last week that yhoo might consider other avenues than selling) I believe it is wise to go long YHOO this week based on recent news.
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Aren't you long to the hilt?
I am long too, but I tihnk you are too optimistic.
 
I am bullish through shorting PUTs. I have over 200 contracts naked PUT 15 and 16 for Nov and Dec. I am a kind of protecting myself this way. I know many people would disagree with me. If there is a buyout of say $30, I will get only my Puts premiums. I believe the best strategy is Jan 2012 rist reversal.
 
I have the following trade on:

Long YHOO. Short Jan12 12.5 20 strangle. 1up. View: asian stocks worth about $12/share (us business worth zero). Limited upside to 20. I got 1.5 for the strangle so that gives me minor cushion on a weak selloff.
 
Up 2% in pre-market.

Rumor is that Facebook also might be interested.

BBC TV on financial section: some European companies also have an eye on YHOO.
 
My prediction is that we hould see 17 by Friday 11/11/11 which is weekly option expiry day if no deal happens till then.
 
Quote from hajimow:

My prediction is that we hould see 17 by Friday 11/11/11 which is weekly option expiry day if no deal happens till then.
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THAT'S MY BIRTHDAY! It would be a nice present.
 
Quote from newwurldmn:

THAT'S MY BIRTHDAY! It would be a nice present.
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Happy BD :)

A good speculative trade on YHOO:

Buy 18-19 Nov 18 Call spread for a debit of 5 cents.

If YHOO goes above 19 by Nov 18 because of a buyout, your 5 cents would be $1. An increase of 2000%

You have to pay about 1.5 commission so you are actually paying 6.5 cents. 10 call spread would cost you $65.
 
Quote from hajimow:

Happy BD :)

A good speculative trade on YHOO:

Buy 18-19 Nov 18 Call spread for a debit of 5 cents.

If YHOO goes above 19 by Nov 18 because of a buyout, your 5 cents would be $1. An increase of 2000%

You have to pay about 1.5 commission so you are actually paying 6.5 cents. 10 call spread would you $65.
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Thanks.

And I think that any takeover is going to be at a muted price.
But I do still think it will get taken over unless Jerry Yang has a brain fart. He's destroyed more shareholder value needlessly than any other executive.

I don't believe in such speculative trades. Generally betting on takeovers is a tough proposition.
 
Quote from newwurldmn:

Thanks.

And I think that any takeover is going to be at a muted price.
But I do still think it will get taken over unless Jerry Yang has a brain fart. He's destroyed more shareholder value needlessly than any other executive.

I don't believe in such speculative trades. Generally betting on takeovers is a tough proposition.
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I don't do that trade either. That is too speculative but sometimes those trades pan out and if you do it a good size, will turn around your financial life.
 
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