by Option Review - October 6th, 2014 5:07 pm
Alibaba (Ticker: BABA) options have been trading for one week. Let’s take a look at where options traders have accumulated the most positions in BABA call and put options. Per the below chart, the 90.0 strike calls and puts are by far the most held options contracts across all available expiries on the Chinese e-commerce giant. All told, it looks like there are approximately 52,000 contracts held at the 90.0 strike level, or roughly 17% of total open interest on the name of 312,000 contracts. The call/put interest ratio of approximately 1.5 on Alibaba indicates more of the open interest held of investors is in call options versus puts on the stock. Shares in BABA today are roughly flat on the session to stand at 88.20, and options traders have exchanged a little more than 22,000 contracts versus the stock’s average daily options volume of 99,000 contracts.
Chart – BABA Open Interest as of 10/06/14

Tags: AliBaba, BABA, Yahoo!, YHOO
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by phil - September 24th, 2014 7:50 am
You call this a correction?
The Nasdaq is down 4%, Russell is down 5%, the Hang Seng is down 6% and the FTSE is down 3.6% but barely a pause from the rest of our Global Indexes. The problem is, it's been so long since we had a proper pullback that people think a tiny little correction is the end of the World. Even in the good old days, before high-frequency trading made a joke out of the market – investors didn't get too upset about a 5% pullback.
That may be the problem as well. The reason the market has marched off to record highs is BECAUSE investors have been led to believe that it's better than bonds, better than cash, even – to have your money in the stock market. We certainly seem to have convinced a lot of Boards of Directors that the best thing to do with their company's money is to buy back their own stock or the stock of their competitors – no matter how ridiculous the price.
$533Bn of hard-earned Corporate Profits were spent buying just the S&P 500, by the S&P 500, in the past 12 months alone. That's 20% more than all of 2013 ($420Bn) and 30% over the 5-year average and that DOESN'T include M&A activity – also at a record pace. While this has been going on, insiders have been SELLING their company stock at a record pace – Interesting…
So the company uses it's profits, not to invest in it's own future but to prop up it's own stock price – making earnings seem better because you are dividing the profits by a lower number of shares than there were last year. This inflates the stock price and the insiders get out and that's when you buy – is that about right?
What a friggin' scam - I can't believe you fell for that! Seriously, that is such an obvious fraud that you would think people would run screaming away from equities. The problem is, there's nowhere to run to, is there. Your cash is being devalued, bonds don't keep up with inflation, real estate is still very…

Tags: 5% Rule, Bounce Levels, corporate buybacks, hedging strategies, insider selling, market correction, Money Flow, Smart Portfolio Management, Yahoo!, YHOO
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by ilene - July 29th, 2009 11:20 am
Courtesy of Henry Blodget at Clusterstock

The official details of the Microsoft-Yahoo deal aren’t much different than the leaks we reported last night.
Here’s our take:
- The deal is significantly worse than expected for Yahoo, as the company will get no money upfront.
- The deal is positive for Microsoft, but largely because Microsoft was nowhere in search without it. Saving the upfront payment is also a help.
- Ironically, the deal will likely be positive for Google, which will now likely benefit from months of purgatory as Microsoft and Yahoo work to clear regulatory scrutiny and then go through the massive challenge of trying to integrate their sales forces and technology. Google itself will also now be able to argue persuasively that there is a big, viable (if discombobulated) competitor in the market.
Conceptually, the idea of Microsoft and Yahoo combining forces is smart. Neither alone has enough share of the search market to be a "must buy," and search relevance and pricing improves with scale. Both companies would likely just continue to lose share ad infinitum without a deal, so they have little to lose by working together. And Yahoo will gain some cost savings, at least for a while.
That said, we think the structure of the deal could end up being a disaster.
The deal calls for Yahoo to handle sales and Microsoft to handle technology. This separation of responsibilities is likely to create headache upon headache for both sides. When a Yahoo client is unhappy with the technology execution, will Yahoo salespeople call Microsoft engineers to complain? When Microsoft is unhappy with the way Yahoo is selling search, will Microsoft’s engineers call Yahoo to complain? When the combination misses targets, will investors call Microsoft or Yahoo to complain? (Both?) When Microsoft licenses Bing to Ask or AOL, will Yahoo’s salespeople sell premium search for those companies, too? What if Ask and AOL are unhappy? Who will they call to complain?
In our opinion, sales and technology are way too tightly linked in this business to split responsibilities between two huge companies that each have other things to worry about. We think the execution of the deal will be a nightmare.
See Also: First Take On
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Tags: Advertising, Big Tech, media, Microsoft, Microsoft-Yahoo!, MSFT, Online, Search, Video, Yahoo!, YHOO
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