Google’s gap-up opening last Thursday has turned into a bear trap that tightened with Friday’s nasty selloff in the final hour. It projects to 735.47, but a last-gasp feint up to the p midpoint, 746.98, should be viewed as a shorting opportunity if tightly stopped. Assuming your options account is qualified for naked positions, I’d suggesting shorting two October 750 calls if the underlying stock rallies to within 12 cents of the 746.98 pivot. Stop yourself out, however, if GOOG goes above 746.21. I estimate the calls will be selling for around 20.70. _______ UPDATE (11:43 a.m. EDT): The stock dove this morning at the bell without an uptick. Because sellers overshot the 735.47 target, we’ll move point ‘A’ up to October 5’s 774.38 to yield a new minimum downside target at 722.41.
