AI
Friday, January 23, 2015 12:15:48 PM
YHOO - I posted a response on the YHOO board...
YHOO is seeing huge put volume in the weekly Jan30 put 46 strike with 19,999 contracts traded. There is also big volume in the weekly Jan30 put at the 48.5 strike with 9916 contracts traded. These puts expire in 7 days. The heaviest call volume for the Jan30 weeklies is at the 51 strike with 3512 contracts traded. How much of the put volume is for insurance is not known, but I speculate a lot of it is.
Further out, the action is more pedestrian. The heaviest call volume in the Feb calls is at the 50 strike with 4021 contracts traded. For the Feb puts the 46.5 strike has the most action with 1069 contracts.
The heaviest call volume in the March contracts is at the 55 strike with 3322 contracts traded. Put volume in the March contracts is low.
It is hard to keep up with the action in YHOO, especially in the weeklies expiring in 7 days.
Short term, options lean bearish for YHOO through earnings pinning the range between 46 and 50. Longer term through March, options are bullish. My guess is any earnings dip might be a good time to add if you believe in the YHOO story. I would avoid buying puts or calls right now as IV's are elevated going into earnings. Buying calls on an earnings dip would be a play to consider as IV's are bound to deflate a bit once earnings is past. Selling some OTM puts today could also work. Get some of that fat IV premium before earnings.
On a side note, I noticed FB wasn't seeing the heavy put action in the weeklies. It is seeing more call volume instead. I guess there is less worry over FB going into earnings.
YHOO is seeing huge put volume in the weekly Jan30 put 46 strike with 19,999 contracts traded. There is also big volume in the weekly Jan30 put at the 48.5 strike with 9916 contracts traded. These puts expire in 7 days. The heaviest call volume for the Jan30 weeklies is at the 51 strike with 3512 contracts traded. How much of the put volume is for insurance is not known, but I speculate a lot of it is.
Further out, the action is more pedestrian. The heaviest call volume in the Feb calls is at the 50 strike with 4021 contracts traded. For the Feb puts the 46.5 strike has the most action with 1069 contracts.
The heaviest call volume in the March contracts is at the 55 strike with 3322 contracts traded. Put volume in the March contracts is low.
It is hard to keep up with the action in YHOO, especially in the weeklies expiring in 7 days.
Short term, options lean bearish for YHOO through earnings pinning the range between 46 and 50. Longer term through March, options are bullish. My guess is any earnings dip might be a good time to add if you believe in the YHOO story. I would avoid buying puts or calls right now as IV's are elevated going into earnings. Buying calls on an earnings dip would be a play to consider as IV's are bound to deflate a bit once earnings is past. Selling some OTM puts today could also work. Get some of that fat IV premium before earnings.
On a side note, I noticed FB wasn't seeing the heavy put action in the weeklies. It is seeing more call volume instead. I guess there is less worry over FB going into earnings.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
