Goog had a decent quarter but certainly was NOT a blow out. The stock is up a modest 3.5% in after hours and that will not be enough to make my call options any real profit and most likely none at all. I will be watching for price action tomorrow to pick up some puts for next month if the stock heads back down below $600. There is quite a bit of resistance at $615 and if you look back to April on the daily chart, you will see two very large elephant bearish bars. This is where the big money dumped and then again in May when the rebound failed to follow through.

 

 

Below are my lotto option trades and most likely these will expire. I am hoping to get some gains on the calls tomorrow morning.

 

 

 

Today is the big day for GOOG earnings. So far the stock is up nicely and looking like it wants to continue higher. The challenge is the chart is setting up for a short pattern. 

 

Here are the daily and weekly pivot points

 

 

 

Looking over the weekly chart, there could be some selling pressure coming in the future.

 

 

If Google misses, then the selling will be hard and I expect a 10% or bigger drop. If they beat, I do not expect a large move higher because most of the volume today on the calls is between 600 - 615. There are some speculators out there at the $640 strike today, so that would be the upside target. As always, I like the put side on my lotto trades because we know how fast and far a stock can fall when the news is bad or unexpected. Volume today on the puts is heavy at the $550 strike, and that is where I expect a fall in price tomorrow if they miss.

 

These options are expensive, so you cannot load up on a small account. You have to take on maybe 1 or 2 and hope for a good move tomorrow.

 

Next week is AAPL and we should see some nice price movement on that stock.