GOOG Breaking Out
Published on June 25, 2007
GOOG Breaking Out
Goog gapped up and seems to be breaking out of the $526-$527 resistance area. Right after gapping up and then moving up to $530.58 it started to drfit lower. From a intarday trading perspective I shall be looking for bullish spread if google managed to cross $531. The comforting thing was google’s closing in higher tertile on strong volume on last Friday closing. The markets are weak currently and may pose a little bit of resistance. It seemed like a coiled spring that is pressured by the market weakness.
How about doing a Jul Bull Put 530/520 Put at around $4.6 ?
Calendar or bullish diagonal maybe a better idea than credit spread as the breakeven has better profile and it can allow for adjustments should Google falters.
Hi OP,
May I know what strike price/month will you be looking at for Calendar or bullish diagonal ?
What premium are we looking to get if we consider both strategies ?
Thank You
credit spread is not bad either..it just that when it goes otherway it has little fleixbility to adjust…other option is Bullish calendar say 550..but if google moves up very quickly you may need to either book profit or manage it the way I suggested on OPN