You have the right approach...however, I would modify it a bit, sell-off a portion of the JAN $45 calls first before the Jan $44 calls. The reason for this is the delta is higher on the Jan $44 calls. We're in the midst of a bull-run for YHOO and you want to ride this run for all it's worth.
I like both definitions, especially on days like this. Today, I thought it was unusual that we popped substantially more than BABA percentagewise. I'm not sure why that happened. Possibly YHOO is just making up for yesterday because they lagged the market a bit yesterday.
Looks like a good investment plan to me. Seriously though, look into converting some of your Jan $44 and Jan $45 into bull call spreads. This will put money in your pocket so that you can wait for a year-end rally.
Under 3) above, FB earnings on Tuesday should be looked at carefully, it would be very nice if they lost some of their market share in social and mobile. This would be a clear sign of YHOO taking market share from FB.
MM is simply being cagey, she probably doesn't want another round of "Big Business" doesn't pay their fair share of taxes thrown in YHOO's face. Perhaps, also, the tax attorneys and CPAs may not have all the details worked out yet.
Absolutely. What I like is Jack Ma has a real bias for acting, it's unlikely that he will leave Chief Yahoo and MM outside of the loop. After all, without his friend Jerry, it may have taken several more years to go public.
Watch AH today, normally on a Friday, we'll be flat AH. However, if we go up during AH today, it's a good sign that Shorts are still covering.
Be careful, it's both good and bad. It doesn't necessarily mean people are buying calls though. A very common trading technique is to writing covered calls. Traders may just be buying back calls that they wrote earlier. Or it may actually be a bearish indicator, more people are writing calls against their current long position.
People are excited over Jack Ma's recent forays into cutting a deal with Lion's Gate and other content providers. All Jerry Yang and MM have to do is stay in contact with Jack Ma and we're off to the races...
Interesting...giving it away for free only works to a certain extent. Makes sense, people that are interested in freebies, will consistently go for the lower price. No brand loyalty whatsoever, just the lowest price.
After the BABA IPO, YHOO is rolling in the bucks, yet MM wants to cut back on costs. She's the kind of person that isn't easily satisfied. She wants to do better, now that YHOO is rolling in the bucks, we will see what she is capable of delivering.