Options Update: Yahoo (YHOO) & Genentech (DNA)
Yahoo (YHOO)
YHOO volatility Elevated into EPS & MSFT buyout offer
YHOO is expected to report Q1 EPS in late April. MSFT proposed the acquisition of YHOO payable in $31 cash or 0.9509 per share of MSFT on Feb. 1. Soleil reiterated a Hold rating on YHOO.
YHOO May option implied volatility of 51 is above its 26-week average of 42 according to Track Data, suggesting larger price movement may be ahead.
Genentech (DNA)
DNA volatility at 30 into EPS, Data & ASCO
DNA closed at $79.42. DNA is expected to report Q1 EPS on April 10. Upcoming events are Rituxan EXPLORER in lupus and OLMYPUS trials in MS.
The American Society of Clinical Oncology (ASCO) Annual Meeting will be held on May 30-June 2, 2008 in Chicago.
DNA April & June option implied volatility of 30 is near its 6-month average according to Track Data, suggesting non-directional price movement."
About Paul Foster
Paul Foster is a former member of the Chicago Board Options Exchange with 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers & acquisitions. His writing about the options market has appeared in a wide variety of publications.
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