Short-Term Bulls Hope Google Inc. (GOOGL) Goes After Uber

Weekly Google Inc (GOOGL) calls are active following reports that it may compete with Uber

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Published on Feb 3, 2015 at 12:39 PM
Updated on Apr 20, 2015 at 5:32 PM

Short-term call buyers have jumped on the Google Inc (NASDAQ:GOOGL) bandwagon, due to reports that the company could use its driverless car technology to challenge Uber in the ride-sharing market. In fact, GOOGL's six most active contracts are calls that expire at Friday's close, and the stock's 30-day at-the-money implied volatility has jumped 4.2% to 21.7%, indicating that near-term options are in demand.

Leading the way is the weekly 2/6 535-strike call, where it seems some buy-to-open activity has taken place. These speculators are looking for the equity to top $535 by the end of the week.

Just yesterday, the stock's weekly puts were in high demand. However, long calls have been the options of choice during the past two weeks, as GOOGL's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio sits at 2.03.

There's no ambiguity from analysts, though, who have been almost entirely bullish toward GOOGL. The stock sports 21 "strong buy" opinions, two "buys," six "holds," with not a single "sell" to be found. Also, GOOGL's average 12-month price target of $621.33 represents a 17.4% premium to the equity's current perch at $529.10, and sits in uncharted territory.

Over the past year, Google Inc (NASDAQ:GOOGL) has lost more than 7%, and is fractionally lower on the day. The security is currently attempting to stay north of its year-to-date breakeven.

Weekly Chart of GOOGL Since February 2014

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