From hot to not.
After rising 25 percent last year, Yahoo shares are down more than 8 percent this year. The technology company's stock has benefited from Yahoo's massive stake in Chinese Internet giant Alibaba. But despite the selloff, one trader made a huge bet that Yahoo shares could soon make multiyear highs.
On Thursday, when options volume ran more than two times its daily average, one trader bet over $12 million that Yahoo shares will rally more than 15 percent in the next six months.
Specifically, the trader bought 35,000 July 50-strike calls for $3.50 per share. Since a call option gives an investor the right to buy a stock at a set price within a set time, the trade is profitable if shares are above $53.50 at July expiration.