Revised Options Update: Yahoo & MSFT
Yahoo (YHOO)
YHOO Put Volume and Prices Elevated Into MSFT Bid Deadline
YHOO is recently trading down $.84 to $26.46.
MSFT self imposed deadline for moving forward with its $31 cash and stock bid for YHOO is April 26.
YHOO call option volume of 243,670 contracts compares to put volume of 338,884 contracts.
YHOO May 20 puts are bid $.31 above their theoretical value.
YHOO May 27.5 straddle is priced at $3.59.
YHOO May option implied volatility of 66 is above its 6-month average of 40, suggesting larger uncertainty.
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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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