Shares of Yahoo! Inc. (YHOO) are trading up .32 today to $18.86. YHOO traded as high as $18.96 on the day today.
Three separate trades went up in the YHOO Jan 2012 LEAPS totaling 40,000 contracts per strike.? The YHOO Jan 2014 20/30 call spread and the YHOO Jan 2014 15 puts went up for 1.86 over .25 and .68, respectively.? The modified risk reversal (buying the call spread and selling the puts) traded for .91 and offers substantial upside leverage.? The open interest on the OTM strikes was small so 2/3 of this trade is opening paper.? The open interest on the 20 strike appears to be closing and taking profits.
30-day implied volatility is trading 25%.?? 10-day implied volatility is near year lows at 18%.? 30-day Implied volatility is trading well above the 10-day historical volatility.? YHOO is trading near 52 week highs.
Yahoo! Inc. is a web portal, search engine and internet pioneer.