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

Digital Content Group
Feb 3, 2015 at 12:39 PM
facebook twitter linkedin


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
 

*SPONSORED CONTENT*

How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.

*SPONSORED CONTENT*