27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
On Tuesday, once-great Internet firm Yahoo! Inc. (NASDAQ: YHOO) looked near to throwing in the towel when it announced its fourth-quarter results.
The company said it was considering "strategic alternatives" in order to restructure its operations, something that will see 15 percent of the firm's workforce eliminated. The cost cutting efforts are the first step in what most believe will end with the company putting its core web business up for sale. Although CEO Marissa Mayer commented that she believes the firm can improve its mobile search function, this week's earnings call marked the first time that Yahoo's board appeared to be considering a sale.
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If the firm does go up for sale, many are beginning to wonder which companies would be interested and whether Yahoo will have many suitors.
Media Firms
So far, only two companies have expressed an interest in buying all or part of Yahoo's business. Media firm News Corp (NASDAQ: NWSA) has expressed an interest in the company, and many believe that other media conglomerates are likely to consider the purchase as well. As Yahoo receives about 1 billion people traveling to its website each month, it could be a valuable asset to publishers.
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Telecoms
Telecom giant Verizon Communications Inc. (NYSE: VZ) said it would be interested in Yahoo back in December, but at the time, Yahoo execs were still opposed to a sale.
However, Verizon is likely to be keeping tabs on Yahoo's progress as a sale begins to look more plausible. CEO Lowell McAdam said he is keen to grow Verizon's exposure to digital media in the coming years.
Verizon isn't the only telecom that may be interested in Yahoo should the firm go up for sale— many analysts see other big names like Comcast Corporation (NASDAQ: CMCSA) and AT&T Inc. (NYSE: T) as viable buyers as well.
Outsiders
While most agree that media companies and telecoms are the most likely buyers for Yahoo, there is some potential for other firms to join the bidding war as well. According to CNBC, some are expecting international firms like Alibaba Group Holding Ltd (NYSE: BABA) and SoftBank Group Corp (OTC: SFTBF) to consider a Yahoo acquisition due to the firm's established user base and advertising unit. However, conducting the sale in dollars could put them off a purchase if the greenback continues to rise.
Image Credit: Public Domain27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.