PeakTrader.com

[administrator]

GOOG reports earnings Tue and pulled-back into the 420s from 475. The implied volatilities of the Feb options typically deflate roughly 15 points after earnings. So, if puts are bought, GOOG has to fall 15 points for the puts to be unchanged. If GOOG rises 15 points instead, the puts will fall equal to a 30 point rise. Over a 50 point move is possible, on earnings, although the options may be too risky, since GOOG is already down 50 points from the high.