Goog is just breaking out from a multi-year high as well as resistance area of $515-$520 range. By looking at the chart it is quite clear that not only stock is making new high, but volumes are also increasing. This is an example of very simple chart analysis of support and resistance areas clearly showing that google is gaining strength.
There are several ways to play a bullishness on this stock, simple call, you may open a bullish credit spread, bullish diagonal, bullish call debit spread or a bullish calendar either call or put. For this perticular situation my favourite is bullish put calendar spread. Here is a risk reward chart of the trade :
The break-even points are $504 and $589 till July expiration for a Jul/sept 540 put calendar spread for $6.90. If by July expiration, GOOG stays at 540, the rewards are huge, about 15.0 for $6.90. Now one doesn’t get that lucky, but still I think has pretty good range to play within to give good risk/reward ratio.
Profitaable trading, OptionPundit