Google Inc. (GOOGL) Traders Gamble On an Earnings Flop

Google Inc (GOOGL) will report fourth-quarter results after the bell

Digital Content Group
Jan 29, 2015 at 10:49 AM
facebook X logo linkedin


Google Inc (NASDAQ:GOOGL) is sitting 1.2% lower this morning, ahead of tonight's fourth-quarter earnings report. Meanwhile, traders are betting bearishly ahead of this event, with puts running at nearly twice the average intraday rate.

Diving into the details, the weekly 1/30 480-strike put -- GOOGL's most active option by a more than 2-to-1 margin -- is seeing some buy-to-open activity. These speculators are anticipating the shares will breach $480 by tomorrow's close (when the options expire), which would require a 5.2% from their current perch at $506.10. While this isn't out of the question, the options market is pricing in a less ambitious 4.2% post-earnings move, based on at-the-money straddle data.

Moving along, GOOGL isn't much to look at, technically speaking. Since topping out at $615.04 in late February, the shares have given back nearly 18%. Over the last few weeks, the stock has also run up against resistance at its descending 20-week moving average.

As alluded to, Google Inc (NASDAQ:GOOGL) will report quarterly results after the close, and analysts are expecting a per-share profit of $7.11 -- a more than $1 improvement over the company's year-ago result. In other news, GOOGL and VMware, Inc. (NYSE:VMW) announced a collaboration in the cloud enterprise space.

Weekly Chart of GOOGL since February 2014 with 20-Week Moving Average

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI