Big Ratio Spread on Yahoo (YHOO) Targets $27.50 a Share

 

Yahoo (YHOO) call options have seen two days of brisk trading. Some of Tuesday's volume was tied to a substantial ratio spread, which involved the purchase of 70,000 YHOO October 25 calls and the sale of twice as many October 27.5s. The spread is a directional bet for a move higher, and one that yields its best profits if YHOO settles at $27.50 at October options expiration.