by Houghton and Atkeson 04/01/08
Call options buyers emerged in Expedia Inc. (EXPE) this morning, buying the April 22.50 (UEDDX) and April 25 Calls (UEDDE) about 6,000 times.
Some investors believe that Google Inc. (GOOG) may make a bid for the company. It is often the case that unsubstantiated takeover rumors turn out to be false. But, in the Internet space when acquisitions do take place, premiums are usually large and options players well-rewarded (e.g.: Microsoft's (MSFT) acquisition of Aquantive for more than a 60% premium in 2007).
With shares of EXPE down 25% year to date, it appears that placing a long bet on this name could take you places.
Dawn Pennington
Read This Before You Buy Another Stock
A savvy stock position can start with a single options trade.
This technique can help you breathe a sigh of relief as it aims to relieve a 'choking' portfolio.
If you are familiar with buying calls and puts, we'll show you how to buy them even cheaper.
Anatomy of a Stock Option Ticker
Option tickers may look like a bowl of alphabet soup to you, but each letter means something.
You don't have to short stock to put a bearish bet on the table -- but the path to profits comes with different levels of risk.
