NEW BULLISH Plays
Yahoo! Inc. - YHOO - close: 33.94 change: -0.12
Stop Loss: 33.40
Current Gain/Loss: unopened
Entry on October -- at $--.--
Listed on October 22, 2013
Time Frame: 6 to 9 weeks
Average Daily Volume = 27.5 million
New Positions: Yes, see below
Why We Like It:
Internet giant YHOO has had a good year. The stock did peak in early October just days ahead of its Q3 earnings report. The earnings results were not that inspiring. YHOO actually lowered its Q4 and 2013 earnings guidance. Yet traders bought the news anyway. Investors are probably happy with YHOO's growing mobile user base that is approaching 400 million people. Plus, YHOO's management said they would keep a larger chunk of Alibaba than Wall Street previously expected. Alibaba is a Chinese Internet company that is expected to IPO in the not too distant future but no date yet and YHOO owns 24% of the company.
YHOO is currently hovering below resistance in the $34.50-35.00 range. The October 4th high was $35.06. I am suggesting a trigger to open bullish positions at $35.15. More aggressive traders may want to jump in early on a move above today's high at $34.60 instead.
Our target is $39.50.
Trigger @ 35.10
Suggested Position: buy YHOO stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the 2014 Jan $35 call (YHOO1418a35) current ask $1.81