But by not supporting the $20 price with buybacks Marissa raped YHOO longs letting all...
...those Jan 20 strike options expire worthless. Volume was very low for the two weeks and MM could easily have run the price up to $22- with just a small part of the authorized buyback cash-going into earnings and the YHOO longs would finally have benefitted. Instead the shorts and option writers won as they have with YHOO for fours years. Why does YHOO hate its shareholders???
1. Marissa isn't enamored with the day-to-day stock price movement and you simply can't be pleased...stock falls to $19.50 its her fault and now 5yr highs its still her fault. Many companies have been destroyed thinking short-term vs. long-term. I'm fairly confident a HUGE part of this rise is due towards a buyback. If you own the $20's then you're not a shareholder anyway as you only purchased the RIGHT to buy it at $20. If you are a shareholder then you own stock so why buy the options? Some tips 1. Never own the front month 2. Look for a return of 3:1 3. Cut losses at 50% 4. Never let an option position be more than 5% of your portfolio. 5. Only invest what you're willing to lose by owning the stock. If you only want to lose $1000 then you only put on an option trade worth $1000. I have a list somewhere but those are off the top of my head.
2. Its unlikely she could have stopped it from being pinned at $20 as Market Makers, in the business to create a market, will in the event of creating that call, will go long the stock and long the put to make it delta neutral. The more it gets above $20 they more shares they unload and vice versa underneath $20. Go to the website OptionAnimal and type in Option Pinning as it has a very good article. I would give the link but Yahoo won't let me. Unless I get a thank you no need to reply besides have you seen the day Netflix is having:)hahahahaha
Learn how to invest. Yahoo shareholders have watched Yahoo go from $15.80 in October when hotmodel said Yahoo was dead money to a 4 year high of $20.50 today. You should do what coldone tells you to do. He bought and told everyone to buy from $11 to $19.
I agree, if I was short YHOO, and did not believe in the company, I would be glad YHOO works against its shareholders. And I still have some long options, but so many expired worthless thanks to Marissa not doing YHOO's stated policy of share buybacks. Remember how she tanked the stock last summer by reversing the YHOO plan to return the AG money to shareholders with div. ? She wasted valuable time and share price and just gave out free lunch and i-phones. I was in favor of a large buyback and share reduction instead of a special div., but she sat on her butt and did nothing.