Traders Using Google Options Over Stock For Earnings Play (GOOG)

Posted in Options 
October 15th, 2009

Google Inc. (NASDAQ: GOOG) is reporting earnings after the close.  It seems now that the stock has recently hit 52-week highs that many traders are using call options and put options as the cheaper way to make bets rather than paying $530.00 per share.  These are the OCT-2009 options alone, which expire at tomorrow’s closing bell (volume and open interest included):

CALL$    Volume    OpInt.
500.00    1,417    5,824
510.00    745    5,270
520.00    1,654    4,085
530.00    3,240    6,962
540.00    4,572    13,439
550.00    7,702    12,798
560.00    4,756    7,865
570.00    4,374    7,157
580.00    2,965    5,162
590.00    2,651    2,937

PUT$     Volume  OpInt
450.00    467    5,736
460.00    476    9,682
470.00    1,429    8,304
480.00    2,279    7,516
490.00    2,864    6,987
500.00    4,328    10,729
510.00    2,346    3,464
520.00    2,497    6,026
530.00    2,879    2,476
540.00    984    535
550.00    207    417
600.00    1,150    2,357

We have just now crossed the 2 million share mark and this stock is down 0.9% right at the $530.00 mark after hitting a 52-week high of $536.90 late this morning.  Average volume is 2.7 million shares.  The call option activity of almost 30,000 contracts represents 3 million shares on a fully leveraged basis.

TIME STAMP 1:49 PM EST

JON C. OGG
OCTOBER 15, 2009

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