A Big Winner in Yahoo! Inc. (YHOO) Weekly Options Hits the Tape

Yahoo! Inc. (YHOO) is a California based information technology and advertising service provider most well known for its eponymous search engine services. At the time of this post, YHOO is currently trading at 44.17, up 3.71% on the day after earlier rumors of a potential buyout from Alibaba Group hit the street. After today’s move higher, YHOO still remains in the upper-middle portion of its 52 week trading range of 32.15-52.62 as it looks to continue the push higher to re-test 45.00 level resistance on a daily chart.

Earlier today a trader bought 3,569 YHOO Mar 6th Weekly 43.5 Calls for $0.25. The stock was trading around $42.95 at the time of the trade and these calls ripped higher with the stock. These calls have already traded as high as $1.04 today making this trade an absolute blowout winner. These calls expire at the end of the week and are a great example of how even in large cap names order flow in weekly options can be traded for great profits.

Trade: A trader bought 3,569 YHOO Mar 6th Weekly 43.5 Calls for $0.25
Risk: $25 per 1 lot
Reward: Unlimited
Breakeven: $43.75

If a trader would have bought a 20 lot of these calls they would have profited $1,580 at the highs.