Option Update: Yahoo options suggest risk after MSFT withdrew bid

Microsoft (NASDAQ: MSFT) announced it has withdrawn its proposal to acquire Yahoo (NASDAQ: YHOO).

YHOO closed at $28.67 on May 4. YHOO closed at $19.18 on January 31, 2008, prior to MSFT's buyout offer on February 1.

YHOO May option implied volatility of 77 was above its 26-week average of 42 according to Track Data, indicating large uncertainty.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Tags: msft, option implied volatility, OptionImpliedVolatility, yhoo

5-06-2008 @ 8:44AM

AAPL would be smart to buy YHOO now that MSFT has walked away from the deal, especially since YHOO's shares are down.

#	Blogger	Posts	Cmts
1	Douglas McIntyre	97	0
2	Joseph Lazzaro	91	0
3	Peter Cohan	80	0
4	Zac Bissonnette	50	0
5	Steven Mallas	49	0
6	Melly Alazraki	46	0
7	Brian White	41	1
8	Steven Halpern	36	0
9	Tom Taulli	29	0
10	Brent Archer	23	0
11	Trey Thoelcke	22	0
12	Paul Foster	22	0
13	Jonathan Berr	21	0
14	Sheldon Liber	21	0
15	Jim Cramer	21	0
16	Jamie Dlugosch	20	0
17	Sarah Gilbert	19	0
18	Jon Ogg	18	0
19	Eric Buscemi	17	0
20	Allan Halprin	15	0

Indexes	Change	Price

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

Other Weblogs Inc. Network blogs you might be interested in:

Twitter doesn't want to be a buyout friend of Facebook	Is the Nintendo Wii too available? Closing Bell: Dow down 7.7%; GE, YHOO, MS fall, PGI, MNT soar Microsoft & Google: Battle in the clouds
Apple piles on Psystar, wins trademark suit Apple finally offers in-ear headphones for sale Terminal Tips: Install software updates from the command line	A few days later, a better notifier: Ding, It's Up Microsoft adds similar images feature to Live Search Images Burn downloaded videos easily with DVDCoach Express
40 Beverly Park, Estate of the Day The Breakers Opens A Real Estate Office Wine Auctions Find People Are Still Buying In Hong Kong	Microsoft & Google: Battle in the clouds The world's 10 biggest losers Berkshire beats Google all the way!