GOOG Ready to Retrace ?

[tradertony76]

For the record, I never advised shorting nor shorted myself. I just saw the head and shoulders top forming and figured I'd start a thread.

I can think of a quite a few trading strategies that one could use to play a retracement other than just outright shorting the underlying:

A) Shorting the OneChicago GOOG futures.

B) Buying ATM puts on the underlying.

C) Buying a bear call or put spread

D) Buying a put backspread on GOOG

E) Going long GOOG underlying after a retracement, or adding to an exisitng position on the dip.

F) Selling OTM calls on an existing position to lower cost of ownership.

There are lots of ways to trade a retracement without outright shorting.

My doing some chartwork on GOOG was not meant as an endorsement/suggestion of any actual trading strategy. Just an attempt to follow the price action for a popular stock.

-T

 

[zxcv1fu]

What a reversal today! Running out of buyers? It moved down fast today. This week is also the option exiration week.

 

[cowpok1027]

To zxcv1fu & you GOOG traders out there --->

Bears are growling with glee as GOOG could not break its 50dma of just under 293 (roughly touched it & retraced 0n 8-15 --> a big retracement day as Mr z correctly pointed out).

Now the big news of the 14 million 2ndary is driving GOOG down big!!

I took a small short position @ around 290 when (after) GOOG bounced off 50d ma.

The odds for deep OTM Puts have just gone way up-may be ITM!!

GOOD LUCK & GOOD TRADING !!

 

[zxcv1fu]

Never know which way GOOG will gap. I am still waiting for my cheap OTM puts to turn expensive

This site does not have today's data yet:
http://www.stockta.com/cgi-bin/analysis.pl?symb=GOOG&num1=567&cobrand=&mode=stock

There are many option trading strategies, but I think OTM cheap options give the biggest bang for the dollar if there is a large movement. The drawdown is very little. I'd use near the money spread for earning play.

 

[zxcv1fu]

Wonder when will GOOG reach $180.

It is smart for the company to sell some shares to lock in some cash for the company.

 

[tradertony76]

Obviously, Google's decision to unload their stock will add downward pressure to the price.

Here is a new daily chart.

 

[tradertony76]

And a new 60 min chart.

 

[cowpok1027]

No doubt your right tony & with GOOG down 5 @ 280 on best volume in almost 1 month it could easily see climax selling shortly.

The main offset I can think of right now is the expected addition of GOOG to the S&P500 since its now > 1year old.

 

[aPismoClam]

a boatload of insider selling should help.

 

[jrlvnv]

Cramer said GOOG is basically gonna double or triple. Used 07 estimates of $10 and a 35% growth which he said he thinks is low. Said a company with this high growth deserves a multiple of 2x growth which would be 70. 70x$10 is GOOG= 700. Gotta love it.