Post by
Carlos66 on Sep 19, 2014 7:41pm
CNBC...fast money segment & why no pop in YHOO
I listened to the talk about the IPO & YHOO & it was interesting to see how they saw the tell of the tape.
---Sentiment on the panel was that some wanted to mitigate the risk in BABA & if they couldn't sell BABA (no options yet) they sold YHOO short.
----9x normal volume in YHOO. As BABA went up YHOO went down due to shorting.
----BABA options won't begin trading till a week this coming Monday & when that happens there won't be any need to short YHOO & then the pressure will be off the stock.; so this shorting has another week to run.
----one trader on the panel said that the valuation of YHOO's core business as a negative made no sense so he bought YHOO. He continued to say that there was no worries about corporate governance (unlike BABA/China) & you get what's left of BABA still held by YHOO.
----Sentiment on the panel that BABA would be held at (supported & not let go lower) $90. & when it stopped going down, one trader bought calls on YHOO.
----This same trader (option monster co-founder) who bought calls when BABA got down to $90. expects YHOO to get to the mid $40's & even $50. after trading normalizes.
carlos