Yahoo (YHOO) Offering Possible 25.94% Return Over the Next 10 Calendar Days

Yahoo's most recent trend suggests a bullish bias. One trading opportunity on Yahoo is a Bull Put Spread using a strike $40.50 short put and a strike $35.50 long put offers a potential 25.94% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $40.50 by expiration. The full premium credit of $1.03 would be kept by the premium seller. The risk of $3.97 would be incurred if the stock dropped below the $35.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Yahoo is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Yahoo is bullish.

The RSI indicator is at 75.63 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Yahoo

Yahoo’s Yang Is Back Playing Alibaba-Board Power Broker
Thu, 11 Sep 2014 00:35:01 GMT

How to Dump the Right Stocks to Buy the Alibaba IPO
Wed, 10 Sep 2014 19:57:00 GMT
TheStreet – Although the advice to sell Yahoo! to buy Alibaba has been bad, here are some stocks investors are most likely to dump in order to place their IPO orders.

[$$] Cash In on Alibaba IPO With Yahoo Options
Wed, 10 Sep 2014 18:22:00 GMT
Barrons.com – For the average investor, getting a piece of Alibaba's initial public offering is as likely as winning the lottery. The underwriters of the Chinese e-commerce giant's (BABA) IPO will allocate shares to institutional customers who generate significant fees. Those customers are apt to sell for a quick profit in the aftermarket where less well-heeled investors, seduced by Wall Street's get-rich-quick marketing machine, will buy Alibaba's stock at price-earnings multiples that might give angina to disciplined investors like Warren Buffett. IPO in history and what will almost certainly be one of the hottest deals of the year can consider a backdoor options trade.

Continental jealousy is no reason to tie down Google
Wed, 10 Sep 2014 18:06:09 GMT
Financial Times – In the last months of the current European Commission, Google is in deep trouble. Its effort to reach an antitrust deal with Joaquín Almunia, the competition commissioner who is to be succeeded by Margrethe …

Options Update: A Bullish Strategy on Yahoo
Wed, 10 Sep 2014 16:24:28 GMT
Bloomberg – Sept. 10 (Bloomberg) –- Bay Crest Partners Equity Derivatives Strategist Anshul Agarwal discusses eBay and his options strategy for Yahoo with Julie Hyman on “Market Makers.” (Source: Bloomberg)

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