Google (GOOG) is ticking $2.17 higher to $697.16 in the wake of yesterday’s 8 percent slide. One player in the options market is possibly closing out a bearish 1X2 put ratio spread on the stock, as 1260 Jan 650 puts were sold for $14.50 to buy 2520 Jan 600 puts for $6. It’s possibly a position adjustment, as open interest is sufficient to cover in both contracts. Also in the early minutes of trading in Google options, a Nov 660 – 700 put spread at $1.30, 1217X on ISE . Looks like the spread was sold, and seems to be rolling a position down from near-the-money puts to out-of-the-moneys, based on ISEE data. The Oct 700 straddle on GOOG might see some interest today, as shares are see-sawing around that level and open interest at that line is 9,159 contracts. October options are expiring after today.
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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.