On a hunch that the stock has eyes for $1000, we’ve been working a lowball bid for some November 1000-1010 call spreads. The stock has weakened since, and although that could provide us with an even better opportunity, I’ll suggest shifting the effort to the December calls. Accordingly, let’s bid 0.70 for eight December 1000-1010 spreads — about midway between the current bid/offer of 0.40/1.10 — good till canceled. The bid should be made contingent on the stock trading 875 or higher, but you can continue bidding if GOOG falls below that number, lowering your bid by 2 cents for each dollar the stock falls. That would imply a spread bid of 0.64 if the stock is trading around 872.00. Please note that GOOG could fall to as low as 861.96, the correction target of the pattern shown, before bottoming. ______ UPDATE (8:32 p.m. EDT): With the stock moving higher, you can raise the spread bid to 0.80 if GOOG is trading above 885, and to 0.90 if above 890. If this gambit gets away from us, we’ll try another approach: legging on the spread, doing the buy side first on weakness.
