Patrick's Rants



1/6/2013

YHOO Recap

Filed under: Money,Stocks — site admin @ 11:37 am

YHOO has taken off like a shot recently, trading up around $20/sh. I’ve been in and out of YHOO for the past couple of years, but if the price keeps running up it could be time to look for lower cost stocks. I currently have the April 15p originally sold for $0.95 that are trading pretty darn close to my commission free nickle price so I have a good til cancel order in to do just that. The are a few reasons to move to a lower cost stock. First, to get a decent premium on the $15p I have to sell way out in time. The stock being around $20, we get two types of people willing to buy the $15p: Long term hedgers (and who is long term?) or long term speculators. Second, I have about $1500 to work with. There will be minimal price movement on a really far out $15p and the downside protection is not that great – I’m only protected down to maybe $14 on YHOO before I’m underwater. Granted, that’s a $6/30% move from here, but still.

So when the options get bought back or expire (I’m betting on buying to close) I’ll start to look for something in the $5/sh range.


Do your own research, this is what I’m doing and is for educational and entertainment purposes only

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Powered by WordPress
Comments, opinions and drivel © the poster. Satire protected under Fair Use. Opinion protected under First Amendment (see: Constitution of the United States)
Nothing on this site should be construed as tax, legal, or investment advice. If you need any of those things, seek out a professional whom you can pay for such advice. Posters cannot be held liable for your failure to perform your own due diligence.