Speaking to Benzinga, TD Ameritrade Chief Strategist JJ Kinahan commented on Yahoo! Inc. YHOO ahead of its earnings report.
Kinahan noted that the stock was down more than 10 percent since its last earnings announcement while, based on implied volatility, the market was expecting a 3.5 percent move (up or down) for the stock following earnings.
In terms of options activity, Kinahan said that Calls had traded about 2.5x normal volume on Monday with January $55.60 and $55.65 Call spreads seeing the most activity.
Week 2 May options also saw increased buying at the $45 strike price with over 5500 contracts purchased Monday.
Yahoo! Inc. reports Q1 earnings Tuesday following the market close and recently traded at $44.68, up 0.06 percent.
Kevin Riley and Brianna Valleskey contributed to this report.
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