Call Option Volume Way Up on Yahoo

Yahoo may be getting to make a move up, or at least the majority of option traders seem to think so. A record number of call options outpaced put options by about 3.5 times. Investors definitely think something’s in store for their stock.

(AVAFIN) — Trading of Yahoo options resulted in establishing a new 90-day call volume record, where 143,527 call contracts exchanged hands between the buyers and the sellers. A total of 41,448 put and 143,527 call contracts was traded raising a 0.29 put/call ratio on shares of YHOO

Unusual volume provides reliable clues that the stock is expected to make a move. Investors
can use the put/call ratio statistics to measure trader sentiment. A high put/call ratio
suggests that the overall investment sentiment is bearish and that investors expect the
underlying stock to decrease in value. Conversely, a low put/call ratio implies that
investor sentiment is bullish based on the large amount of call options.

Shares of Yahoo rose $0.01 (+0.06%) to $16.00 in yesterday’s trading session. The price of YHOO ranged between $15.95 – $16.40. Volume is 33,812,756 in relation to the three month average volume of 27,820,100 shares. YHOO is trading above the 50 day moving average and higher than the 200 day moving average. The stock’s 52 week low is $11.09 and 52 week high is $18.84. Performance indicators show that the stock has gained 5.54% within the last week.

See AVAFIN for more on the story

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