Shares of Yahoo are showing all of the signs of a momentum stock in the making as Marissa Myer is appearing become the Elon Musk of female CEOs. Every time she speaks, investors listen because she’s so damn likable & it does not matter what she says! She has a keynote speech to give after the bell today @ the CES in Las Vegas, though it won’t necessarily be a game changer; the stock always pops during and shortly after.
Today- Buy Limit @ 40.66 and below.
-This won’t happen unless it falls, convincingly, through the 40.79-40.83 range.
-OR if we see a broad market pullback EOD. Which has been relatively consistent as of lately.
-If it can’t drop through 40.75-.85 and hovers around 41, it’s possible to break out above HOD @ 41.21, but more likely to trade sideways in the last hour of trade.
SELL (AH tonight after speech)
-Sell Limit @ 42.09
-Keep in mind 4pm ET is 1pm PT, meaning anyone on the west coast who is present will be first to whip out there mobile trading platform.
-If they like what they hear and it rips AH, 5-6% or more, YHOO will start trending on social media sights. That’s when retail jumps in and you sell the news.
SHORT-LONG (I do not recommend this strategy unless you’ve played the short-long swing game)
**this is only how we would play it and recommend adjusting the strategy based on your risk appetite**
-Short above 41 in increments of 25% of your position, with a stop @ 41.10., in the afternoon prior to the last hour of trade.
-The reason for incremental trades is if it break above the HOD 41.21, someone either knows something or their pumping with small lots so they can short and shake out the retailers.
-Buy to Cover @ 40.89
-Half position with a BUY Limit @ 40.85.
-If it rolls through 40.70, another half @ Market, preferably under 40.50, but no need to get.
-If you like to hedge, sell some calls if it bounces after going long, but I’ll let Evan make that recommendation.
Disclaimer: We long Yahoo Common (YHOO). Short JAN 40 calls. As always, trade with caution.