Yahoo (YHOO) Offering Possible 42.45% Return Over the Next 32 Calendar Days

Yahoo's most recent trend suggests a bullish bias. One trading opportunity on Yahoo is a Bull Put Spread using a strike $41.00 short put and a strike $36.00 long put offers a potential 42.45% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $41.00 by expiration. The full premium credit of $1.49 would be kept by the premium seller. The risk of $3.51 would be incurred if the stock dropped below the $36.00 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 79.15 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

Too late to hop aboard Alibaba IPO?
Wed, 17 Sep 2014 11:04:00 GMT

10 Things In Tech You Need To Know Today
Wed, 17 Sep 2014 10:27:00 GMT
Business Insider – Good morning! Let's dig in to the…

Yahoo Shares Seen Rallying on Alibaba IPO by Certificate Buyers
Wed, 17 Sep 2014 09:27:42 GMT
Bloomberg – Yahoo! Inc. (YHOO) may rise 65 percent by the end of the year after Chinese e-commerce giant Alibaba Group Holding Ltd. goes public later this week, according to bets by structured-products buyers. Investors are piling into call warrant and knock-out certificates that pay a return if Yahoo’s share price climbs above a pre-defined level. Some are betting Yahoo will increase to as much as $70 by Dec. 29, according to data compiled by Bloomberg. “At the moment, Yahoo is one of the most common U.S.-based underlyings trading in Germany,” said Heiko Geiger, the Frankfurt-based head of public distribution of structured products for Germany and Austria at Bank Vontobel Europe AG.

Alibaba Left Out Of Global Indices: Many More Have The Same Problem
Wed, 17 Sep 2014 01:37:00 GMT
Barrons.com – As it currently stands, China's largest e-commerce the Alibaba Group (BABA), which Yahoo! (YHOO) has 22% stake of, is going to be left out of the world's biggest indices, even though, ironically, 80% of e-commerce transactions in China, or 8% of the country's retail, flows through its platforms. An estimated $210 billion passive funds follow these global indices. If Alibaba ends with similar market cap as Hong Kong-listed Tencent Holdings (0700.HK), it will miss out about $4 billion portfolio inflows from these passive funds. “While Alibaba is generally regarded as a Chinese company, it is incorporated in the Cayman Islands, headquartered in Hong Kong, and to be listed on the New York Stock Exchange (NYSE).

[$$] How Yahoo Can Maximize Its $35B Alibaba Stake
Tue, 16 Sep 2014 23:06:00 GMT

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