Bullish options flow was detected in YELP stock on November 18, 2020.

Make sure to review this lesson on options trading so that you understand the chart above.

More than 18,600 calls traded which was 7x the expected, and implied vol increased over 1 point to 49.84%. Nov-20 $31.5 calls and 11/27 weekly $32.5 calls were the most active options, with total volume in those strikes near 13,500 contracts.

On November 11, 2020, Yelp (YELP) CEO Jeremy Stoppelman said that a recent U.S. antitrust case against Google (GOOG) validates his view that the Alphabet unit has a monopoly on internet search, Bloomberg’s Isabelle Lee and Emily Chang reported.

“We’re very encouraged by that,” Stoppelman told Bloomberg. “Google has behaved illegally and has leveraged its monopoly in ways that are destructive to innovation and competition. It’s bad for consumers, bad for small business owners.” “They’ve really tried to maximize the revenue and in doing so have put the consumer in the back seat,” Stoppelman added. “There’s no organic content anymore.” Source: https://www.bloomberg.com/news/articles/2020-11-11/yelp-ceo-is-encouraged-by-u-s-antitrust-case-against-google

I believe that traders are getting much too bullish on YELP stock right now with the idea that Yelp is a good buy if the DOJ breaks up Google. Nothing is going to happen against Google with Joe Biden and Democrats in office. Why?

Alphabet/Google Presidential Campaign Donations 2020. Source: https://www.opensecrets.org/orgs/alphabet-inc/summary?id=d000067823

That’s just 2020 Presidential Campaign donations from Alphabet executives and employees. When it comes to lobbying, Google spent more than $12 million in 2019.

Google’s got the money and power to write its own legislation and it’s doubtful that search companies like Yelp will benefit from DOJ action against Google with Biden in power.

finviz dynamic chart for  yelp

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