I think Google will hit 607.28 by December expiration. A relatively low-risk way to play the move would be to buy the 600-610-620 butterfly for a debit of between 0.50 and 1.00. You would start by shorting two December 610 calls on the offer, then buying a 600 call and a 620 for about 0.50 to 1.00 more than you received in premium for the two Dec 610s. The position could widen to as much as $10 (i.e., $1000 per butterfly) if the stock is trading for 610 at expiration. We’ll work on this one for a while, but you should try to get a feel for how the three option series trade against each other as the stock moves up and down. If you’re able to fill the order, please let me know in the chat room so that I can establish a tracking position for your further guidance.
Ads are by Google and do not represent the views of Rick's Picks or its affiliates.
Comments on this entry are closed.