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Option Brief: Google Inc (NASDAQ:GOOG) is 0.5% higher at $1,208.56, after earlier notching an all-time high of $1,212. Late Friday, Dan Loeb's Third Point LLC disclosed that it had upped its GOOG stake by 50,000 shares to 160,000, while scooping up shares of BlackBerry Ltd (NASDAQ:BBRY).
This afternoon, option traders are rolling the dice on even higher highs for GOOG. The most active option thus far is the February 1,200 call, where more than 1,500 contracts have crossed the tape at a volume-weighted average price (VWAP) of $12.40. Most of the calls traded on the ask side, and implied volatility was last seen 3 percentage points higher, hinting at buy-to-open activity.
The goal of the call buyers is for Google Inc (NASDAQ:GOOG) to extend its run into uncharted territory. Specifically, the buyers will begin to profit if GOOG overtakes $1,212.40 (strike price plus VWAP) by Friday's close, when the options expire. Risk, on the other hand, is limited to the initial premium paid for the calls.