GOOG will max out the rally pattern shown if and when it hits 866.35, a compelling Hidden Pivot target that will have taken nearly three months to reach. Let’s be ready for a possible price reversal with a bid for some out-of-the-money puts. Specifically, bid 2.45 for two April 28 835 puts, day order. If filled, stop yourself out if the options subsequently trade below 2.00. Alternatively, on an o-c-o basis, offer one of them to close for 3.90, good-till-canceled. Our bid is based on a calculation of the puts’ fair value if the stock rises by nearly $4 on Tuesday; from that I subtracted 20% to account generously for time decay, since the puts will expire in just four days. If the position is stopped out, bid 1.65 for two more puts, day order. That bid is based on a Hidden Pivot target for the options themselves. _______ UPDATE (Apr 25, 9:48 a.m.): The stock has dropped back moderately after failing to push past the 866.35 target. The intraday high so far is 865.80, close enough to the target to consider it a dead-center bullseye. The puts are out of reach at the moment but I’ll suggest leaving in the lowball bid for the day nevertheless. _______ UPDATE (Apr 25, 12:02 a.m.): Cancel the bid for the puts, since the stock appears to be headed into the wild blue yonder, oblivious to gravity and driven by the global tide of funny money.
