A trader bought 30,000 April $16/$20 call spreads and sold 30,000 April $14 puts.
Risk/Reward:
A trader sold the April puts at $1.07 to partially finance the purchase of the April $16/$20 call spread at $1.37 for a net debit of $0.30. Yahoo is still awaiting an official takeover deal. Yahoo closed trading today nearly unchanged at $15.61. The break even price level for this spread is $16.30. The white line in the daily chart below is the break even price.
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No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.
I do not know if Yahoo will continue to exist as long as the site currently exists. It will probably be one day sold to a major company. More likely, I think that Yahoo will be sold piece after piece. I do not think to continue to trade with this value.
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