Implied volatilities have collapsed so badly that the September 270 put we hold for $8 can be bought for a bit less than that even though the stock is trading nearly $10 lower. My hunch is that option volatility will return once Google has had the opportunity to fall a further 50-70 points. We can wait, since our risk is small and we have gravity on our side. It should be noted that the stock’s daily chart is actually bullish at the moment and will remain so, technically speaking, until 355.31 is exceeded to the downside. I doubt that we’ll have to wait very long.
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