LOTTO PLAYS COMMENTARY FOR GOOG

 

GOOGLE Rocks the house!!!  (My upside first target is $596.43)

They killed earnings estimates and the stock SOARED a record 20%!!

The call options made a FORTUNE!!!!!!

Today

Yesterday

 

 

 

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Google earnings are this Thursday and option expiration is Friday. This company loves to report the day before option expiration for some reason.

If they beat, then a nice relief rally will most likely ensue, so a straddle play here is a better bet. BUY the PUTS and cover with CALLS closer to the money, that way if they do beat, we get paid back on the puts and make a nice profit too.

If you do put this trade on I would overweight the May puts vs. Apr since they expire the next day. Look below and you will see that in 06 they opened up $20 in the money on expiration day but I think that was a fluke and most likely will not happen again because they were not traded on the S&P at that time so the downside volatility this time is more controlled by fund manager IMO.

 

CALLS 

 

 

 

Here is what GOOG did this past Jan.

 

 

 

Here is what it did in Jan 2006