Google Inc. (GOOGL) Calls Hot Ahead of Earnings

Google Inc (NASDAQ:GOOGL) will report first-quarter earnings after tonight's close

Apr 23, 2015 at 1:47 PM
facebook twitter linkedin

With its new mobile-friendly algorithm in place and the launch of its wireless service underway, Google Inc (NASDAQ:GOOGL) will move on to its next order of business this week -- quarterly earnings. The company is set to report after tonight's close, and ahead of the big event, speculators are piling into the equity's options pits. By the numbers, 21,000 calls have changed hands today, versus 12,000 puts, representing 1.6 times GOOGL's average intraday volume.

Most active is the security's weekly 4/24 600-strike call, and it appears some of today's activity could be of the buy-to-open kind. For those initiating long calls here, the goal is for GOOGL to rally above the round-number $600 mark by tomorrow's close -- when the weekly series expires -- territory not explored since last September.

Widening the sentiment scope reveals today's call-skewed session is just more of the same for a stock that's up nearly 14% from its Jan. 12 annual low of $490.91 to trade at $558.72. In fact, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.77 rests lower than 65% of all similar readings taken in the past year, meaning short-term speculators are more call-heavy than usual toward GOOGL. In the weekly 4/24 series, specifically, peak call open interest can be found at the 590 strike, where 2,512 contracts are currently in residence.

Historically speaking, GOOGL has averaged a single-session post-earnings move of 4.9%. This time around, the stock's near-the-money straddle is pricing in a move of 3.9%. Meanwhile, for Google Inc's (NASDAQ:GOOGL) first quarter, Wall Street is calling for a per-share profit of $6.60.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners