Yahoo Spinoff Talks Send Hedges to 2015 High as Shares Surge
- Protection cost for Yahoo shares highest since December 2014
- Company said to consider Alibaba stake sale at board meeting
This article is for subscribers only.
As Yahoo! Inc. weighs corporate restructuring plans, options traders are paying a premium to play it safe.
Implied volatility on Yahoo’s stock is at its highest of the year versus an exchange-traded fund mirroring the Nasdaq 100 Index, according to data compiled by Bloomberg. The increase signals rising demand for options used to hedge against losses in Yahoo, whose stock has climbed almost 25 percent since the end of September. That increase includes Wednesday’s 5.8 percent gain, the biggest single-day jump in two months.