Best Stock on the Market

Call Spread on YELP on 8/19/2014

Upward Trading Channel on YELPYelp Inc. (YELP) operates as an online local guide that connects people primarily with boutiques, mechanics, restaurants, and dentists.

The company’s local advertising services include free online business account that enables businesses to view business trends, use the revenue estimator tool, message customers, update information, and offer Yelp deals and gift certificates; enhanced listing solution, which eliminates search advertising from the businesses’ profile pages and allows to incorporate a video clip or photo slide show on the pages; search and other ads services; and call to action, a feature that allows businesses to promote various transaction.

It also offers brand advertising solutions, such as traditional display advertising comprising graphic and text display advertisements on company’s Website and mobile applications; and brand sponsorships for various national brands from automobile, financial services, logistics, consumer goods, and health and fitness industries comprising traditional display advertising.

In addition, the company provides Yelp platform, which allows consumers to transact directly; online reservation services in restaurants and nightlife venues; Yelp deals, a product that allows local business owners to create promotional discounted deals for products and services; and gift certificates products for local business owners to sell full-price gift certificates directly to customers. It serves customers in Australia, Austria, Belgium, Brazil, Canada, the Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, New Zealand, Norway, Poland, Portugal, Singapore, Spain, Sweden, Switzerland, Turkey, the United Kingdom, and the United States.

Shares are heading higher in an upward trading channel. Higher share prices are expected for this stock.

52-Week Trading Range: $49.01 - $101.75

Last Trade: $77.85

Trade

  • Buy 1 September $77.50 Call at $4.25
  • Sell 1 September $82.50 Call at $2.37
  • For a net debit of $1.88

Profit/Loss Analysis

  • Breakeven at $79.38
  • Maximum profit is $312.00 at strike of $83.00
  • Maximum loss is ($188.00) at strike of $77.00

Closing Summary

  • Sold 1 September $77.50 Call at $6.80
  • Bought 1 September $82.50 Call at $3.60

Position closed on 8/22/2014 at price of $3.20 with a 70.21% gain in 3 days.

Updates

8/22/2014 3:18:36 PM

We are taking profits on YELP call spread. YELP last traded at $82.20.

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