GOOG Earnings this Thursday - 570/580/590 Butterfly only $1.20

[diaoptions]

GOOG Earnings this Thursday - 570/580/590 Butterfly only $1.20

• GOOG @ $576.73
• Buy 1 GOOG Jul 2012 570.00 call @ $20.80 http://finance.yahoo.com/q?s=GOOG120721C00570000
• Sell 2 GOOG Jul 2012 580.00 calls @ $15.30 x 2 = $30.60 http://finance.yahoo.com/q?s=GOOG120721C00580000
• Buy 1 GOOG Jul 2012 590.00 call @ $11.00 http://finance.yahoo.com/q?s=GOOG120721C00590000
• Total Debit $1.20.
• Maximum loss $120.00, maximum gain $1000.00 if GOOG closes at $580 on Friday.

Another option is to widen the strikes and base the butterfly around the 575 or 580 calls. Lots of combos, below are 4:

• 560/580/600
• 550/580/610
• 540/575/610
• 550/575/600

 

[newwurldmn]

A trade or a watch list? Or do we find out on Friday? Your track record with GOOG is less than stellar.

 

[FCXoptions]

What is the outlook for their earnings announcement? That looks like pretty good odds. If your right you win big and if you are wrong... well you don't lose bad at all. Solid Play!

 

[FreakofNature]

Gamblers initiate pre earnings.

Traders initiate post earnings.

 

[Random.Capital]

Quote from FreakofNature:

Gamblers initiate pre earnings.

Traders initiate post earnings.

There's room enough in this world for both.

 

[cdcaveman]

the straddle is priced at 33 bucks.. Anyone Calender spreading, ratio backspreading? implied 33 dollar move doesn't seem that much to me.. i've seen goog move 100 bucks at earnings..

 

[cdcaveman]

umm i'm gonna do some experimenting

 

[cdcaveman]

look like the straddle that you would have sold at the close for 34 dollars or so will be worth four bucks or so on the open

 

[cdcaveman]

check it

 

[Put_Master]

Quote from FreakofNature:

Gamblers initiate pre earnings.

Traders initiate post earnings.

"Investors" initiate when the technicals and fundamentals both line up at the same time.