Friday, May 11, 2007

Quick Update

I should have sold calls on Yahoo (YHOO) following the published acquisition rumors. Anyway, I'm late to the party. I sold the Yahoo June $30 calls (YHQFF) at $1.25. They expire in about 5 weeks. If I get called away, I will be looking to re-enter at sub-$30 prices. Otherwise, my position remains intact. Effective cost basis on the shares is now $28.25.

1 comment:

The Travelin' Man said...

Looks like you made out on the YHOO calls, so far. The stock has dumped the last couple of days, as I was thinking about doing just what you did. I bought back my May 35s for a nickel, and planned to write the Jun 30s. Now, I am waiting for a little rebound in the stock price to do that. If I got in around $1.25, my cost basis for YHOO would be just a touch lower than yours.

On the other hand, I wouldn't mind if MSFT announced a buyout at about $37-39/share, either! :-)