Google Shares May Be Driven By Big Earnings
Posted by admin | Posted in Smart Marketing | Posted on 19-01-2012
Tags: Google, Google calls, Internet search company, option speculators, Wall Street analysts
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The optimism of investors for Google Inc is running high and the stage is all set for another jump in shares of the Internet search company.
Options investors appear to be betting on more gains for the stock that hit a record high of $670.25 on January 4. Traders have been buying Google calls that grant the right to buy the stock at a fixed price up to a specific date at a greater pace than its puts or stock selling rights at a preset price.
“The options market is positioned bullishly ahead of results. Call options have been bought over the past few weeks,” Credit Suisse equity derivatives strategist Terry Wilson said.
“Google is a stock that is surrounded by a lot of optimism from Wall Street analysts and option speculators. This sets a high bar on the earnings report, and any disappointing news could leave the stock vulnerable to the downside,” said Bell, of Schaeffer’s.





