Comments on: How to play GOOG Earnings : Part-3 http://www.optionpundit.net/earnings/google-earning-strategy-030107 Powerful option trading strategies for consistent income. Credit spread, Iron Condor, Calendar spread, Double Diagonal, Income Spread. Wed, 03 Dec 2008 23:35:30 +0000 http://wordpress.org/?v=2.5.1 By: GOOG Earning plays : 3 Profit out of 4 at OptionPundit http://www.optionpundit.net/earnings/google-earning-strategy-030107#comment-120 GOOG Earning plays : 3 Profit out of 4 at OptionPundit Thu, 01 Feb 2007 16:50:12 +0000 http://www.optionpundit.net/uncategorized/google-earning-strategy-030107#comment-120 [...] 2nd trade was based on what OP reader Avi had suggested here. My credit was $3.24 and I bought it back for nearly $0. So I am able to keep all the credit received. The returns on margin are 6%.  [...] [...] 2nd trade was based on what OP reader Avi had suggested here. My credit was $3.24 and I bought it back for nearly $0. So I am able to keep all the credit received. The returns on margin are 6%.  [...]

]]> By: chiu http://www.optionpundit.net/earnings/google-earning-strategy-030107#comment-112 chiu Thu, 01 Feb 2007 04:01:51 +0000 http://www.optionpundit.net/uncategorized/google-earning-strategy-030107#comment-112 It is really a wonderful and tremoudous effort to analyse the earning event for GOOG by you. This also shows your wealth of knowledge in this field. However, I find it really difficult to put on any strategy for this case. In my mind, it might be a similar case to recent AAPL event, stock price gradually moves up toward the earning date, price drops with good company performance. Furhter more from the past few earning events, the GOOG price moves about 5-12% when it moves with the earning announcement. With the stock price at historical high, that will require a move of $25-$60 either way, for which I find it difficult. Backspread might be non-directional strategy but in this case, it needs to move a lot to break even for which I am not comfortable. As a result, I did not put on a trade. In any case, it is really a wonderful site to see an indepth analysis for such kind of event. Do keep it up. It is really a wonderful and tremoudous effort to analyse the earning event for GOOG by you. This also shows your wealth of knowledge in this field.

However, I find it really difficult to put on any strategy for this case. In my mind, it might be a similar case to recent AAPL event, stock price gradually moves up toward the earning date, price drops with good company performance. Furhter more from the past few earning events, the GOOG price moves about 5-12% when it moves with the earning announcement. With the stock price at historical high, that will require a move of $25-$60 either way, for which I find it difficult. Backspread might be non-directional strategy but in this case, it needs to move a lot to break even for which I am not comfortable. As a result, I did not put on a trade.

In any case, it is really a wonderful site to see an indepth analysis for such kind of event. Do keep it up.

]]>