Google (GOOG) is trading lower and implied volatility is a bit higher, as some investors are looking towards the company’s April 14 earnings report — Thursday afternoon before April options expiration Friday. Shares are down $5.80 to $586 today after Stifel Nicolaus analysts trimmed 2011 revenue estimates. The firm says that, in addition to $40 million due to disruption in Japanese operations, Google is also facing tough sequential comparisons due to weakness in January. Overall options volume in Google is light and includes 29,000 puts and 36,000 calls. The weekly (4/8) 590 and 600 calls are the most actives. Google also saw a number of multi-exchange sweeps that traded around 2:00 eastern time. For example, 411 April 615 calls traded at $4.24 when the market was $3.70 to $4.20. At the same time, 395 April 555 puts traded at $4.40 when the market was $4 to $4.40. Looks like premium buyers, possibly taking positions ahead of the profit report. Implied volatility in GOOG has moved up about 9 percent to 31.
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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.