Well GOOG had a massive PAY DAY if you picked the options above the 100 MA on the Weekly but if you had the regular Jan contracts you did not make any money because GOOG pushed higher in after hours and early session today.

 

 

This did not turn out as well as I was expecting it to. The volatility was well priced into the options this time so unless you were able to short the stock you would have had to buy the 600-625 puts to get a better profit.

 

 

 

 

 

 

 

 

 

 

 

After reviewing these results, I am going to adjust my strategy to picking up three strike prices at or in the money to assure I make a profit and one strike DOTM to capture a potential windfall

 

 

I will apply this strategy adjustment to AAPL and NFLX next week.

 

 

 

 

 

 

 

 

 

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1/19/11 - ANOTHER HUGE WINNER COMING TOMORROW ON GOOG!!!

 

Goog MISSED and missed BIG

 

Google said on Thursday it earned $2.71 billion, or $8.22 per share in the fourth quarter, compared with $2.54 billion, or $7.81 per share in the year-ago period.

Excluding certain items, Google earned $9.50 per share, lagging forecasts for $10.49 a share.

 

They were severely decimated in after hours with the BIGGEST drop in their trading history—to date...with more to come!

 

Here are my current trades:

 

 

If they continue to sell off tomorrow then my Puts will make a very nice profit.

 

 

 

 

 

Post conference call —the SELLING picks back up!!

 

 

 

Here are the closing options prices:

 

 

 

Here is the Daily chart and my expected target price:

 

 

 

If GOOG attempts to climb back up tomorrow, I would be a PUT buyer into next months strike prices

 

 

 

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1/18/12 - Tomorrow is the big day and with today's action, I am getting more confident the puts are going to pay off.

 

 

 

 

Here are my trades:

 

 

 

 

 

 

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1/17/12 - It's time for GOOG earnings and a potential HUGE profit. Looking over the chart we can see there are good opportunities and true to form, GOOG will announce on Thursday the day before options expiration!

 

As you can see, GOOG attempted to put on some higher ground into the end of the year, but with a failed pre-earnings run it could be the time to strike gold with puts. Of course you have to do a straddle unless you just want to gamble so here is what I suggest.

 

Buy this weeks Puts at the 580 or 585 strike and next months calls at the $650 strike price.

 

Looking at the chart for the past year, you can see how volatile GOOG gets on earnings releases and there are plenty of gaps that have to be penetrated. If they miss this time, I suspect the stock will be heading DOWN for a few months.

 

 

 

PUTS

 

 

 

CALLS

 

 

 

 

 

 

There looks  to be a lot of optimism that GOOG will continue higher since the short interest is lower this month that last.

 

 

If there is a surprise, there is less than a days average volume to cover the shorts so I would not expect a large gain in price but with institution holding 81% of the shares, anything can happen. After all, Ma and Pa certainly can't afford this stock at $625.58 per share—especially in these pathetic economic times.

 

The BIG surprise would be a stock split announcement.

 

 

 

 

 

 

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