Woah - MSFT has just bid $31 a share for YHOO!

[RichieE]

Damm...

Why can't anyone leak this sort of info to me 24h in advance?!?!? It closed at $19.06 yesterday... it's trading at $30.80 in pre-trade. I could have done with a 50% return.

 

[vahn]

just enter straddle at market open for YHOO on Friday, and you will gain profit from this news.

 

[RichieE]

just enter straddle at market open for YHOO on Friday, and you will gain profit from this news.

That wouldn't have worked. The open was at $28.70 and it only dropped to $27.34. The only way I can see to benefit would be to do any strategy that sells volatility. It's not going to drift far away from the MSFT offer price unless their takeover bid is dropped.

 

[vahn]

No, you wrong if you said it's not worked. I entered position on friday. YHOO IV @market open still 45%. On Market close it's already >52%. We take advantage from IV spike, not the underlying move.