Comments on: Yahoo Offers Strong Value at $25 http://www.stocktradingtogo.com/2007/11/14/yahoo-offers-strong-value-at-25/ Investing Online Made Easy Fri, 20 Nov 2009 09:55:02 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Welcome Jack Haddad and Sean Hannon - Stock Trading To Go http://www.stocktradingtogo.com/2007/11/14/yahoo-offers-strong-value-at-25/comment-page-1/#comment-34831 Welcome Jack Haddad and Sean Hannon - Stock Trading To Go Sat, 17 Nov 2007 00:27:50 +0000 http://www.stocktradingtogo.com/2007/11/14/yahoo-offers-strong-value-at-25/#comment-34831 [...] will be sharing professional insight on investment ideas which you can find examples of here, here, and here. Sean is focused on providing pre-market and post market analysis with a mix of [...] [...] will be sharing professional insight on investment ideas which you can find examples of here, here, and here. Sean is focused on providing pre-market and post market analysis with a mix of [...]

]]> By: Jack Haddad, MD, MBA http://www.stocktradingtogo.com/2007/11/14/yahoo-offers-strong-value-at-25/comment-page-1/#comment-34826 Jack Haddad, MD, MBA Fri, 16 Nov 2007 20:11:17 +0000 http://www.stocktradingtogo.com/2007/11/14/yahoo-offers-strong-value-at-25/#comment-34826 You would buy the shares and simultaneously write the calls. To write the calls, you would sellect "sell to open." When you cover, you sellect "Buy to cover." Please be advised that if you have not done this strategy in the past, I discourage you from placing real capital. You might want to experience it first with hypothertical trading. You would buy the shares and simultaneously write the calls. To write the calls, you would sellect “sell to open.” When you cover, you sellect “Buy to cover.”

Please be advised that if you have not done this strategy in the past, I discourage you from placing real capital. You might want to experience it first with hypothertical trading.

]]> By: MillionDollarJourney http://www.stocktradingtogo.com/2007/11/14/yahoo-offers-strong-value-at-25/comment-page-1/#comment-34778 MillionDollarJourney Thu, 15 Nov 2007 17:06:16 +0000 http://www.stocktradingtogo.com/2007/11/14/yahoo-offers-strong-value-at-25/#comment-34778 I'm a little new to the whole options game. Are you suggesting to buy the underlying stock? Or buying Dec Strike 25 calls? I’m a little new to the whole options game. Are you suggesting to buy the underlying stock? Or buying Dec Strike 25 calls?

]]> By: Jack Haddad, MD, MBA http://www.stocktradingtogo.com/2007/11/14/yahoo-offers-strong-value-at-25/comment-page-1/#comment-34763 Jack Haddad, MD, MBA Thu, 15 Nov 2007 06:56:17 +0000 http://www.stocktradingtogo.com/2007/11/14/yahoo-offers-strong-value-at-25/#comment-34763 Aaron, I concur with your concern regarding the competition that YHOO faces from GOOG. However, YHOO at 25/share hedged against the Dec strike 25 calls offers great downside protection. As the calls decay in time value come the 3rd week of Dec (expiration), the underlying shares' downside value is preserved by nearly 1.65/share! By then, you can roll the Dec calls into the January which would most likely be worth about 1.4/call and be termed "at the money" calls. The beauty of "at the money" calls is that they dont place a cap on your gains, should the shares sure. All in all, buying shares and writing calls against them offer a great hedge strategy. I have employed this system for years and have prospered well. I will post other strategic plays on other stocks as more opportunites arise. Aaron, I concur with your concern regarding the competition that YHOO faces from GOOG. However, YHOO at 25/share hedged against the Dec strike 25 calls offers great downside protection. As the calls decay in time value come the 3rd week of Dec (expiration), the underlying shares’ downside value is preserved by nearly 1.65/share! By then, you can roll the Dec calls into the January which would most likely be worth about 1.4/call and be termed “at the money” calls. The beauty of “at the money” calls is that they dont place a cap on your gains, should the shares sure.

All in all, buying shares and writing calls against them offer a great hedge strategy. I have employed this system for years and have prospered well. I will post other strategic plays on other stocks as more opportunites arise.

]]> By: Aaron http://www.stocktradingtogo.com/2007/11/14/yahoo-offers-strong-value-at-25/comment-page-1/#comment-34759 Aaron Thu, 15 Nov 2007 01:28:36 +0000 http://www.stocktradingtogo.com/2007/11/14/yahoo-offers-strong-value-at-25/#comment-34759 Yahoo is a very tough one to call right now. Google has certainly been beating up on Yahoo and is actually still cheaper on a peg basis. I want to wait to see that Yahoo is getting its growth back before buying in. Yahoo is a very tough one to call right now. Google has certainly been beating up on Yahoo and is actually still cheaper on a peg basis. I want to wait to see that Yahoo is getting its growth back before buying in.

]]>