timwest

YHOO _ Buy-Write

NASDAQ:YHOO   YAHOO INC
533 2 5
Yahoo             is in a new uptrend and with the company in the headlines for potential acquisition, the call options are carrying a higher level of interest which is pushing up the price. I believe it is a good time to sell those calls against holding shares of YHOO             , which I feel are at a reasonably low valuation overall. I feel that a 6% return in the course of 2 weeks time until the options expire, is a decent return. I feel that the shares would return to $14 without the recent news, so that means the trade could break even. However, that's a trade I'm willing to take.
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
sbokov PRO
5 years ago
good commentary..
Reply
timwest PRO
5 years ago
This trade worked out very nicely and without any hiccups along the way because $15.18 was the low going forward from the time of publication. TO SUMMARIZE: $1 return ($1.18 for the option, less $0.18 loss on the stock) with $14 net cash invested ($15.18 for the stock, less $1.18 for the call option), less commissions, is a 7% return in two weeks.
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out