Covered Call Recommendation on Yahoo (YHOO)
Look at the November 2011 14 covered call. For each 100 shares of Yahoo (YHOO) stock you buy, sell one November 2011 14 covered call option for a $12.30
(13.50 – 1.20) debit or better. This is potentially a 13.8% assigned return. Yahoo does not pay a dividend.
S&P reiterates Buy opinion on shares of Yahoo (YHOO) . According to unconfirmed reports from Bloomberg and others, at a scheduled talk and Q&A session held late last week at Stanford University’s graduate business school, Jack Ma, the founder, Chairman and CEO of Alibaba Group, expressed an interest in buying YHOO. He referenced discussions with the company and other interested parties. We think that YHOO is considering strategic alternatives, and believe its 43% stake in Alibaba is perhaps its most valuable single asset. Ma and Alibaba have been interested in repurchasing all or some of YHOO’s stake for some time.