Jim Strugger's Yahoo! Inc. Trade

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Speaking on
Bloomberg Markets
, Jim Strugger of MKM Holdings revealed his options trading strategy for
Yahoo! Inc.YHOO
ahead of earnings. He likes
Yahoo! Inc.
and he thinks that possible catalysts for a move higher are the stake in
Alibaba Group Holding LtdBABA
and the restructuring that is going to take place. Strugger said that the options market is implying a 7 percent move on earnings and he expects to see a larger move after the event. To make a bullish bet he wants to buy the March 30 call options, which were trading around $1.55 at the end of the session on Wednesday. The break even for the trade is at $31.55 or 9.62 percent higher from
Yahoo! Inc.'s
closing price.
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Posted In: MediaBloomberg MarketsJim Strugger
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