Yelp on traders’ 2019 buy list

Stocks losses accelerated on Thursday as markets gave back a chunk of the previous day’s record rally.

But traders are betting that there’s upside ahead for Yelp.

On Thursday investors bought more than 26,000 Yelp calls at the February 35 strike price, according to Investitute co-founder and “Halftime Report” contributor Jon Najarian.

Shares are more than 6 percent over the past month, but the stock sunk to about $30 per share in November after a disappointing earnings report.

A big chunk of recent gains are from Yelp’s 3% surge on December 7th when the stock was added to the S&P Midcap 400.

Options traders are now betting the stock will go higher in 2019. “I like it here at this level, I think you’re getting a steal and a lot of people may have their eye on this one next year,” said Jon Najarian on Thursday’s “Halftime Report”.

“I certainly will be watching the earnings report” he added.

Yelp is expected to report fourth quarter earnings on February 6th.

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