NEW YORK (Reuters) - Alibaba Group Holding Ltd's record public offering of shares on Friday further spurred already elevated activity in Yahoo Inc's options, pushing volume on the U.S. Internet company to a one-day record high.
Shares of Alibaba, in which Yahoo holds a big stake, surged 38 percent in their first day of trading on Friday, valuing the company at $231 billion by the close of trading.
Investors eager for a bite of the Chinese e-commerce giant had turned their attention to Yahoo options in recent days, sending options volume in Yahoo steadily higher over the last month. Yahoo sold some $8 billion worth of shares in the offering, but it still has a 16.3 percent stake in the company.
Options trading in Yahoo spiked to 5.4 times normal, with a record 1.83 million contracts traded, nearly 35 percent higher than the previous one-day record set in 2008, according to options analytics firm Trade Alert data.
About 1.26 million calls and 568,000 puts traded on Friday. The calls leading puts is consistent with the run-up into the Alibaba IPO over the past two weeks, Henry Schwartz, president at Trade Alert said.
The 30-day implied volatility in Yahoo's options was down about 18.1 percent at 41.56 percent on Friday, according to data from options analytics firm Livevol Inc.
The drop in the implied volatility is a result of the "risk" around the Alibaba IPO being out of the way, Ophir Gottlieb, chief executive officer at Los Angeles-based Capital Market Laboratories LLC, said.
Yahoo shares lost 2.7 percent to close at $40.93 on Nasdaq on Friday with about 222 million shares traded, its busiest day since May 2008.
(Reporting by Saqib Iqbal Ahmed; Editing by James Dalgleish)
FIND OUT MORE ABOUT 'BEN Latest News'
'Like us on Facebook'
http://www.facebook.com/pages/BEN-Latest-News/443681719077160
'Follow us on Twitter'
www.twitter.com/benlatestnews
For Advertisment and Partnering with us contact our CEO on:
BEN Latest News™
BB PIN: 260158B5
Skype: cwizard123
Phone: +2348075912014
Email: cwizard123@gmail.com
On: Facebook, Twitter | LinkedIn - cwizard123
Saturday, 20 September 2014
Home »
» TECHNOLOGY BATTLE: Yahoo options volume hits record on Alibaba's market debut
TECHNOLOGY BATTLE: Yahoo options volume hits record on Alibaba's market debut
23:12
No comments
Related Posts:
TOP NEWS Tensions surge in Hong Kong protests amid scuffles, signs of backlash By John Ruwitch and Clare JimHONG KONG (Reuters) - Fresh scuffles broke out on Saturday between Hong Kong pro-democracy protesters and opponents of the week-long demonstrations, reigniting concerns that the Chinese-co… Read More
TOP NEWS Islamic State video shows second British hostage beheadedBy Mark Hosenball and Sylvia WestallWASHINGTON/BEIRUT (Reuters) - Islamic State militants beheaded British aid worker Alan Henning in a video posted on Friday, triggering swift condemnation by the British and U.S. governments… Read More
TOP NEWS U.S. defends Ebola response, about 50 under observationBy Jon HerskovitzDALLAS/WASHINGTON (Reuters) - U.S. officials on Friday broadly defended the response to the country's first case of Ebola, although one acknowledged that while the government was confident of containing t… Read More
TOP NEWS Top North Korea officials make rare visit to SouthBy Ju-min ParkINCHEON South Korea (Reuters) - Three senior North Korean officials arrived in South Korea on a rare visit on Saturday to attend the Asian Games closing ceremony in what could potentially bring a breakthrough in… Read More
TOP NEWS Kurds call to arms as Islamic State closes in on Syrian townBy Ayla Jean Yackley and Tom PerrySURUC Turkey/BEIRUT (Reuters) - The main Kurdish armed group in Syria called on its kinsmen across the region to help it stop a massacre in the Syrian town of Kobani as Islamic State militant… Read More
0 comments:
Post a Comment