Mike Khouw Sees Unusual Options Activity In Yahoo! Inc.
CNBC Options Action's Mike Khouw said on the show that he noticed higher than average call options volume in Yahoo! Inc. (NASDAQ: YHOO). More than twice of its average call options volume was traded on Tuesday.
Khouw added that a lot of call options have been sold and the most active was the September 43 strike. Traders were selling these options for $0.90 and it is interesting that they are going to be expiring right at the same time as the Alibaba IPO. They are thinking that Yahoo's run is going to end at $43.90, which is the breakeven for this trade.
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