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Last-minute bearish bet in Yahoo

Chris McKhann (chris.mckhann@optionmonster.com)

A huge put trade is looking for Yahoo to give up some of its recent gains.

optionMONSTER systems show that a block of 22,446 August 36 puts was bought for the ask price of $2.19 at the end of yesterday's session. The volume was well above the strike's previous open interest of 3,202 contracts, indicating that this is a new position.

The puts weren't tied to any trading in the underlying stock identified by our scanners yesterday, so they could be making an outright bearish bet. They also could have been purchased as a hedge against an existing long position, but that is less likely because they are in the money . (See our Education section)

YHOO finished the day at $35.88, up 1.5 percent on the day. The Internet company has climbed off support at $33 in the last week and is nearing the top of a three-month range, with resistance at $37.

Yesterday's put trade pushed total option volume in Yahoo past 113,000 contracts, twice its daily average for the last month.

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