(for details pls visit www.OptionPundit.net)

Don’t read this if you are not willing to lose 100% of investment in this speculative trade. Google in my opinion is still the king of earnings play. I covered Google extensively in several parts. For those who love fundamental analysis, here is the 3 part series.

I started with fundamental analysis and later I talked about 4 different type strategies. It may not suit to your “speculation style”. This is surely not an “investment” opportunity” rather a speculative one to benefit from the movement in the stock after earning announcement.

Generally speaking ATM IV is a good gauge of how much a stock can move. Based on current IV profile GOOG IV difference is over 20%. Now I don’t expect google to move over $100 after earnings, but I do want to speculate for a 10% move i.e. +/- $50. Based on current $550-$560 price that works out to be $610 or $510. When I combine that with Fib series, I get expected pin points at $610/$520/$510.

I want to play it as cheap as possible, as I am willing to lose all, so I shall be looking for opening butterflies at these points. We can discuss more here in the forum as well.

Again watch out- Don’t play this if you are not willing to lose 100%. This is extremely risky i.e. if google doesn’t pin at any of these points, you will lose all the money.

Have fun, Profitable trading, OP