Friday, January 21, 2011

Google (NASDAQ:GOOG) Could Move Up 5 Percent Says Options Traders

With expectations Google (NASDAQ:GOOG) was going to again exceed expectations for their latest quarter, option traders weighed in on it, saying they think Google will increase by over 5 percent after earnings were reported. They said this before the report.

Those number appear achievable, as in after hours trading, at about 5:00 PM EST, Google share had already risen over $15, almost a 2.5 percent gain less than an hour after the report concluded.

According optionhouse.com chief investment strategist Steve Claussen, that's less than past quarters. He noted, "Compared to the 11.2 percent move in the stock after earnings in the previous session and a 7 percent move prior to that, the expected move this time is a bit subdued."

So far the most active options on Google are the January $630 and $650 calls, which probably point to bets made for the short term, specifically for today, as they expire at close of trading.

Google easily beat earnings estimates, and revenue was up as well. They closed Thursday at $626.77, down $4.98, or 0.79 percent.

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