Yahoo! Inc. (NASDAQ:YHOO) experienced an unusually high options activity lately, and some of those activities were hinged on a big bullish bet on Yahoo! Inc. (NASDAQ:YHOO) stock. Michael Khouw discussed on CNBC about these option activities and talked about one peculiar option activity from an investor on Yahoo! Inc. (NASDAQ:YHOO) stock.
Khouw pointed out that the options activity was pretty high on Yahoo! Inc. (NASDAQ:YHOO) stock. He said that the options volume was doubled when compared to the average daily options volume for Yahoo! Inc. (NASDAQ:YHOO). He said that there was one interesting option activity on the stock, which he thought was a massively bullish bet.
“[…] What we saw somebody do was roll a bullish bets that they had previously made out to July, by purchasing the July 50-calls paying about $3.50 for those. So that’s the bet that the stock is going to get up 15% by July expiration. There was another interesting thing about this. We saw a tremendous amount of call activity before the stock made the big move that it made over late last October and that was what they were rolling out for. There is still about 150,000 contracts that could potentially be rolled out. The other thing was this person also bought stock and they bought other calls as well. So really big bullish bet going out past earnings all the way to July,” Khouw said.
He said that some investor bought 35000 July 50 calls for a cost of $3.50. He said that this was assuming that Yahoo! Inc. (NASDAQ:YHOO) stock might go up by 15% and touch $53.50 by July, which comes after an earnings report as well. He thought that this was a big bullish bet on Yahoo! Inc. (NASDAQ:YHOO) stock. He pointed out that the investor also bought Yahoo! Inc. (NASDAQ:YHOO) stock and some other calls as well.
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