What amazes me is a few option players jumped in with buying some Yahoo puts when it was practically at the high. I don't know if that was luck or if some kind of TA indicated Yahoo was about to break.
No, it was all skill and intelligence -- and good looks, as well ... yeah, that's the ticket!
Actually, I think some people on AOL's Shark Attack boards were talking Thursday about Yahoo being a good short, and I thought I'd take a look. Well, fundamentally, the P/E was 160 times next years First Call estimates, the price was 20 times book value, and 30 times sales.
TA just showed me an amazing 7 day climb, which didn't seem sustainable. The rate of that climb led me to expect a near-term collapse, and I decided that near-expiration puts would be better than shorting. I was trying to decide between the October 45 or 40 puts, and the stock spiked up Friday, so I picked up the Oct 45's cheap. I think it was lady luck.
I hadn't gotten a chance to look at Amazon yet, and hoped it would continue to move up for a few more days. I think I've heard that a pretty impressive percentage of books are actually sold on-line, and I'm surprised that Amazon isn't making money now. It will probably get tougher in the future, as they'll have increasing competition from Barnes & Nobles, and others. |
