The Federal Trade Commission is investigating a total of three online-advertising potential mergers. The three antitrust reviews involve merger deals Microsoft, Yahoo and Google are proposing with three web-advertising firms.
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Microsoft Corp. (MSFT) is courting the web-advertising company aQuantive Inc. (AQNT) for a reported $6 billion. Yahoo (YHOO), who already owns 20% of the company, has laid out a deal to purchase the remaining 80% of Right Media for a cool $680 million. And you may have already gotten wind, through the copious media coverage, of Google’s (GOOG) $3.1 billion bid for DoubleClick.
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FTC investigators are taking a close look at the DoubleClick and Google merger. Media reports suggest the investigation includes extensive document requests and interviews with key players from the companies. It is anticipated the FTC and Justice Department will not release a ruling on the matter for several months.
The Yahoo and Microsoft deals may also inspire the FTC to take similar action, thus delaying the deals for a time. The Wall Street Journal reported the FTC has not yet issued document and interview requests from Microsoft and Yahoo. Because the deals are more recent, this could be just because the characteristically slow bureaucratic wheels have not yet gained enough inertia to spin.
Media reports suggest Microsoft and Yahoo are ready for the regulatory approval process. If the Microsoft deal were to go through, it could cause an upward bump in the price of aQuantive.
These deals, however, are by no means guaranteed approval. The American Association of Advertising Agencies and the Association of National Advertisers have both told regulators they feel the deals could have a negative effect on industry competition.
Looking at this News from an Options Trading Perspective:
Although it is hard to say if these deals or their approval would affect the stock prices of giants like Microsoft, Google and Yahoo, it is still fun to look at how the options on their stocks are currently doing. And because option data is often cumbersome and difficult to find, an investor really requires the aid of a solid tool to help them sort through the noise. With its 14-day free trial, there’s really no reason not to take PowerOptions for a test drive. We think you’ll find the interface easy to use and you’ll be finding desirable option trading ideas in no time.
PowerOptions has trading experts available to help investors more fully understand the option trading process. They can be reached, toll free, at 877-992-7971. There are additional resources on the PowerOptions website for investors to learn more about the fun and exciting world of option investing. The following links, Help with Options, How to Write Covered Calls and Investing in Options are all great resource articles to help you get the hang of options trading.
Potential Trades:
All of the following option trades have 37 days until expiration. These trades were discovered using the powerful suite of option search tools found at PowerOptions.
| PowerOptions covered calls Internet Ad Mergers (37 days) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
OPTION | Strike Info |
Opt Bid |
% Dnsd. Prot. |
% If Unch. |
% If Asgnd |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MSFT | $30.52 | MSQGK | 07 JUL $30.00 | $1.10 | 3.60% | 2.00% | 2.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| YHOO | $27.30 | YHQGY | 07 JUL $27.50 | $1.30 | 4.80% | 5.00% | 5.80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GOOG | $502.84 | GOPGO | 07 JUL $500.00 | $19.10 | 3.80% | 3.40% | 3.40% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AQNT | $64.10 | QBTGL | 07 JUL $60.00 | $4.80 | 7.20% | 0.80% | 0.80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MSFT:
The Microsoft trade involves the July $30 call option and offers 3.6% downside protection and 2.0% potential profit if the stock is above the $30 strike price at the end of the option period.
Competitors for MSFT include: Google Inc. (GOOG), International Business Machines Corp. (IBM), Oracle Corp. (ORCL), Apple Computer Inc. (AAPL), Adobe Systems Inc. (ADBE), Altiris Inc. (ATRS), Borland Software Corp. (BORL), Convera Corp. (CNVR), Citrix Systems Inc. (CTXS), DivX Inc. (DIVX), Earthlink Inc. (ELNK), Epicor Software Corp. (EPIC), Immersion Corp. (IMMR), Logitech Intl. SA (LOGI), Lawson Software Inc. (LWSN), Marchex Inc. (MCHX), McAffee Inc. (MFE), Macrovision Corp. (MVSN), Novell Inc. (NOVL), Openwave Systems Inc. (OPWV), Progress Software Corp. (PRGS), Research In Motion Ltd. (RIMM), RealNetworks Inc. (RNWK), SAP AG (SAP), Smith Micro Software Inc. (SMSI), Stellent Inc. (STEL), Sun Microsystems Inc. (SUNW), Sybase Inc. (SY), Symantec Corp. (SYMC), TiVo Inc. (TIVO), United Online Inc. (UNTD), WebEx Communications Inc. (WEBX), Wind River Systems Inc. (WIND), and Zixit Corp. (ZIXI).
YHOO:
The Yahoo trade involves the July $27.50 call option and offers 4.8% downside protection and 5.8% potential profit if the stock is above the $27.50 strike price at the end of the option period.
Competitors for YHOO include: Google Inc. (GOOG), AOL LLC (private), MSN (private), Healtheon/WebMD Corp. (HLTH), Infospace Inc. (INSP), VA Software Corp. (LNUX), Marchex Inc. (MCHX), Napster Inc. (NAPS), Rediff.com India Ltd. (REDF), Sina Corp. (SINA), and Travelzoo Inc. (TZOO).
GOOG:
The Google trade involves the July $500.00 call option and offers 3.8% downside protection and 3.4% potential profit if the stock is above the $500.00 strike price at the end of the option period.
Competitors for GOOG include: Yahoo! Inc. (YHOO), IAC Search & Media, Inc. (private), MSN (private), Convera Corp. (CNVR), DivX Inc. (DIVX), eBay Inc. (EBAY), Infospace Inc. (INSP), Marchex Inc. (MCHX), MIVA Inc. (MIVA), Microsoft Corp. (MSFT), and Travelzoo Inc. (TZOO).
AQNT:
The aQuantive trade involves the July $60.00 call option and offers 7.2% downside protection and 0.8% potential profit if the stock is above the $60.00 strike price at the end of the option period. This may not be the best time for this trade, but as the news of the merger progresses it may be something to watch.
Competitors for AQNT include: Accenture Ltd. (ACN), ValueClick Inc. (VCLK), Digitas Inc. (private), Digitas Inc. (DTAS), 24/7 Real Media Inc. (TFSM), and Websidestory Inc. (WSSI).
For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions‘ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.
PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the covered call investment strategy.
PowerOptions‘ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, naked puts and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.
[tags] Federal Trade Commission, DoubleClick, FTC, American Association of Advertising Agencies, Association of National Advertisers, AOL LLC, MSN, IAC Search & Media, Inc., Digitas Inc., AAPL, Apple Computer Inc., ACN, Accenture Ltd. Class A, ADBE, Adobe Systems Inc., AQNT, aQuantive Inc., BORL, Borland Software Corp., CNVR, Convera Corp., CTXS, Citrix Systems Inc., DIVX, DivX Inc., EBAY, eBay Inc., ELNK, Earthlink Inc., EPIC, Epicor Software Corp., GOOG, Google Inc., HLTH, Healtheon/WebMD Corp., IBM, Intl. Business Machines, IMMR, Immersion Corp., INSP, Infospace Inc., LNUX, VA Software Corp., LOGI, Logitech Intl. SA, LWSN, Lawson Software Inc., MCHX, Marchex Inc., MFE, McAffee Inc., MIVA, MIVA Inc., MSFT, Microsoft Corp., MVSN, Macrovision Corp., NAPS, Napster Inc., NOVL, Novell Inc., OPWV, Openwave Systems Inc., ORCL, Oracle Corp., PRGS, Progress Software Corp., REDF, Rediff.com India Ltd., RIMM, Research In Motion Ltd., RNWK, RealNetworks Inc., SAP, SAP AG, SINA, Sina Corp., SMSI, Smith Micro Software Inc., SUNW, Sun Microsystems Inc., SY, Sybase Inc., SYMC, Symantec Corp., TFSM, 24/7 Real Media Inc., TIVO, TiVo Inc., TZOO, Travelzoo Inc., UNTD, United Online Inc., VCLK, Value Click Inc., WIND, Wind River Systems Inc., YHOO, Yahoo Inc., ZIXI, Zixit Corp., covered call investment strategy, help with options, how to write covered calls, investing in options, investment strategy, iron condor, option investing, options trading, poweroptions, stock option trading, stock options [/tags]