Options Update: Yahoo (YHOO) & Sotheby's (BID)
Yahoo (YHOO)
YHOO Volume Heavy, Volatility Decreases As Shares Rally
YHOO is recently up $1.46 to $25.83.
MSFT announced on May 5th the withdrawal of its proposal to acquire YHOO.
YHOO total option volume is heavy on 592,825 contracts.
YHOO May 25 straddle is priced at $2.50.
YHOO May option implied volatility is at 67, below a level of 77 from May 5th; June is at 58, above its 26-week average of 43, indicating large price movement.
Sotheby's (BID)
BID Call Volume And May Volatility Up Into EPS
BID is scheduled to report Q1 EPS on May 9.
BID is recently trading at $27.86.
Wedbush Morgan says: "Global art market carrying considerable momentum into key spring auctions." Wedbush has a Buy rating and a $39 price target on BID.
BID call option volume of 6,451 contracts compares to put volume of 1,319 contracts.
BID May option implied volatility is at 84; June volatility of 57 is near its 26-week average of 57, suggesting non-directional risk risk.
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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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