Looking for slides in Yahoo! (NASDAQ: YHOO), Altera (NASDAQ: ALTR)


While some investors went to lunch, options investors in Yahoo! (NASDAQ: YHOO ) and Altera Group (NASDAQ: ALTR ) expressed bearishness in the names.

By 12 p.m. EST, more than 7,200 YHOO October 20 calls had crossed the tape thanks to investors who could have sold these options for around 19 cents per contract. In this bearish play, investors are calling for limited upside in the stock. These short calls turn profits if YHOO shares close lower than $20.19 at October options expiration.

These out-of-the-money calls are home to current open interest of 10 contracts, indicating investors sold them to open. Implied volatility of the October 20-strike calls, which have dropped three cents on the day, is 25%.

YHOO announced a global partnership with Twitter this morning to allow access to Twitter feeds through the YHOO Web site. YHOO shares have climbed 14 cents to $15.52 so far today and it's itneresting that these calls have dropped despite the rally in the shares.

By12:19 p.m. EST, several large blocks of the ALTR April 24 puts had traded, totaling nearly 13,000 contracts . A look at the largest blocks of these options suggests investors paid roughly $1.05 per contract , indicating bearish stances on the company. Investors who bought these puts will make money if ALTR shares close lower than $22.95 at April options expiration.

The April 24 puts are home to current open interest of just 30 contracts, indicating investors opened long positions in these options. The options, currently trading down 50 cents on the day, have an implied volatility of 27%.

ALTR did not announce any company specific news, but Stifel Nicolaus resumed coverage of the stock with a "buy" and set a target price of $30. This positive news could account for the 4% pop up in the stock to $24.19 so far today.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Options

Referenced Stocks: ALTR , YHOO

Karla Yeh

Karla Yeh

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