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Weekly Google Options Hot Amid Twitter Buzz

Nine of Google Inc's (GOOGL) 10 most active options expire at Thursday's close

Mar 31, 2015 at 2:25 PM
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The rumor mill has set its sights on Google Inc (NASDAQ:GOOGL) and Twitter Inc (NYSE:TWTR) today. Meanwhile, in GOOGL's options pits, weekly contracts are hot. Specifically, nine of the equity's 10 most active options expire at Thursday's close.

In the lead are GOOGL's weekly 4/2 560-strike call and put, with possible buy-to-open activity detected at both. For those initiating the long calls, the goal is for the security to extend its lead above the strike through the holiday-shortened week. Meanwhile, those purchasing the puts to open are rolling the dice on the shares breaching the $560 mark over the same time frame.

Widening the sentiment scope reveals traders have preferred calls over puts among options slated to expire in three months or less, per GOOGL's Schaeffer's put/call open interest ratio (SOIR) of 0.75, which ranks in the 28th annual percentile. Regardless, those purchasing the stock's short-term options are able to do so for relatively deflated premium, as evidenced by GOOGL's Schaeffer's Volatility Index (SVI) of 28%, which rests lower than 99% of all similar readings taken in the past year.

Technically speaking, the stock has done well since hitting an annual low of $490.91 on Jan. 12, up 14% at $560.45. However, this rebound has run into a stern level of resistance in the $580 region -- an area that supported Google Inc (NASDAQ:GOOGL) last summer.

Weekly Chart of GOOGL Since July 2014
 

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