I am recommending the purchase of the March 840-850-860 call butterfly for a 0.10 debit or better. Ideally, you would want first to short two March 850s for a current 0.45 apiece; then, to immediately buy one March 840 call for 0.60. That would give you a 1:2 vertical spread for a 0.30 credit, reduced by whatever you pay for a single March 860 call (currently offered for 0.30) to complete the position. This is a low-cost, low-risk play on the very bullish, 848.29 target I flagged in GOOG a while back. The impetus for the trade came from a question asked during this morning’s weekly tutorial session for webinar grads. Please report any fills in the chat room so that I can establish a tracking position for your further guidance. _______ UPDATE (7:00 p.m. EST): Chat-roomers pursued this opportunity so diligently that I am going to track it even though no one seems to have bought the spread for the suggested 0.10. Most reported fills for less than 0.20, so our tracking position will record four @ 0.20. Theoretical risk on this one is about $40, commissions included, but it could produce a profit of as much as $4000 if GOOG rallies a measly 15% between now and mid-March, when the calls expire. For now, do nothing further.
