Yesterday we ran the Tradespoon Momentum Scanner, which displays weekly options on momentum stocks that are trending. Institutional traders are buying weekly options on Yahoo ($YHOO). We have $YHOO trending up for the next two weeks with a 91 percent accuracy.
The most active options were the $58 and $60 calls, trading for $0.08 and $0.05 respectively. They traded over four times the open interest. These are long shots to say the least, both having less than 5 percent probability of being in the money.
Earnings slated for reporting today provides a catalyst to possibly move the stock ~$4 into the earnings announcement of the stock. Anything really positive in the stock coupled with an upside move in the general market would be enough to put these options in play.
Check out the options Toolbox for the latest Momentum Trades, http://www.tradespoon.com/platform.php#tools. Have a great trading day!
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