Google (GOOG) trades down $51.34 to $588.23 on its first earnings miss ever and options on the stock are heavily traded through the first two hours of Friday’s session. 82,000 calls and 78,000 puts traded in the name so far. About 55 percent of the volume is in the expiring Jan 2012 contracts. OTM Jan 590 calls, 600 calls, 580 puts and 585 puts are the most actives, as players are actively jockeying for position in anticipation of the next intraday move in Google shares. The activity has been in smaller sizes. The biggest trade is a 528-lot of Jan 590 calls for $2.35 when the market was $2.30 to $2.35. Beyond the front-month, Feb 600 and 620 calls are the next most actives. Weekly 600 calls, which are 2 percent OTM and expiring in 7 days, are seeing interest as well. Meanwhile, implied volatility in GOOG options is seeing a significant post-earnings crush, down 31 percent to 22.5, compared to a 52-week range of 55.5 (10/3) and 15 (2/18).
About the Author (Author Profile)
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.