Shares of Yelp Inc. (NYSE: YELP) exploded Thursday May 7, 2015 on rumors that the Company may be pursuing a sale. The first to report on this was The Wall Street Journal.
Recently a large player is putting his money on new developments to emerge soon … by purchasing as many as 30,000 July 17 2015 $50 Calls
The bulk of the options in question were purchased (my assumption is … by a single player) on 2 different occasions:
Since the options traded at ask, it suggests that the trade initiator took a long position in the contracts:
Total Call Options involved in the Transaction:
If the player already had long exposure to a total of 272,798 YELP shares (Shares or options with a maturity date <60 days) … … expect a 13D to be filed within the next 10 Calendar Days.
13D must be filed within 10 calendar days of crossing over ownership of 5% of ownership of combination of stock AND options exercisable within 60 days.
PS: Not sure a signle could player has 30% of the Total Short interest (currently at 10.84m shares)... so .. I doubt this is hedging.
Disclosure: The author is long YELP.
Additional disclosure: Long exposure with different options structures ... with some bets on Vola too