Google (GOOG) is off $14.59 to $567.11 and falling to session lows in active trading of 2.3 million shares on worries about next week’s earnings release. The Internet giant is due to report the afternoon of Thursday, July 19 and Sanford Bernstein analysts said to expect a “material miss”. The firm said today it expects Google to post $7.83 billion in revenues after traffic acquisition costs, which is well below Street expectations of $8.44 billion. While pre-earnings jitters are weighing on the shares, options action is picking up as well. 44,000 calls and 33,000 puts so far. July 590 calls, which are falling 4% out-of-the-money and will expire the day after the company reports earnings, are the most actives. 4,600 traded. Interestingly, the next 7 most actives in Google are Weekly contracts that expire at the end of this week and before the profit report is released. 33% of the flow in Google is in the Weekly 7/13 contracts — 570 and 575 puts are the most actives. At the same time, implied volatility in the options on the stock is moving up 6% to 39.5 and back to the 2012 highs seen on 4/10, just before earnings were last released on 4/12. Shares fell 4.1% to $624.60 on the news and are down an additional 9.3% since that time.
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.