GOOG – Google (Last:552.60)

Google is closing fast on a 553.87 target first broached here in July when the stock was trading 25 percent lower at 442. There are other compelling targets near there as well, but we’ll need to settle on one, as we have,  in order to play.  Getting short painlessly with put options is going to require some finesse, so my plan calls for initiating the trade via an  intraday signal in the chat room. (The alert will be posted as an update to the tout as well, in real time.)  If you want to try this one yourself, I’d suggest using an initial stop-loss of at least 30 cents, but no more than 40 cents. _____ UPDATE (12:33 a.m.): The target briefly and very precisely contained Google’s $25 rampage, but the stock got second-wind and 30 minutes later stopped us out of a Dec 500 put purchased for 5.90 for a loss of $10 (or perhaps $19 if you used a market stop).  The high so far today has been 554.75. If it proves to be the top, or at least “a” top, we’ll factor that into our next targeted trade in the stock.  The recommendation was predicated on accuracy to within 30 cents, but the pattern we used to target Google had taken six weeks to play out, so perhaps I should have allowed a bit more leeway.

Tagged as: Forecast, GOOG, Google