Options action is picking up in Google (GOOG) and is likely to remain brisk this week ahead of the expiration and earnings, Thursday (after market). Shares are up $17.36 to $641.54 and touched new three-year highs today. 70,000 calls and 40,000 puts traded on the Internet giant. The top trades are an apparent Jan 610 – 650 bearish risk reversal at $2.70, 1800X. This might be a short-term hedge or collar ahead of earnings. Beyond that, most of the action has been in smaller lots and includes a possible Jan 595-605-650-670 iron condor at $7.35, 355X on AMEX. Implied volatility in Google is up about 11 percent to 30.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.