They were trading below 20 prior to the original MSFT bid. A deal with Google might cause an increase in short term speculation but I doubt the stock is going

They were trading below 20 prior to the original MSFT bid. A deal with Google might cause an increase in short term speculation but I doubt the stock is going to get back to 30 with such news. If you think MSFT is still going to pursue them, buy some YHOO, if you think Yahoo is going to continue on its own, they're probably over-valued and worth shorting until the stock gets down to 20 again. I haven't really looked at the options chain on YHOO but looking that over wukk give you a good indication of what the market expects the price to be over the next few months.