Google Getting 'Binged'?
by Jon Lewis 07/08/09
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On the sentiment front, analysts and options players seem to be stuck in the good ol' days, when GOOG couldn't be stopped. All 20 covering analysts rate the shares a "buy," with 16 of those being "strong buys."
The only benefit the stock will see from analysts is for new coverage. But, even then, a strong rating will get lost among all the others.
The put/call ratio has been falling for the past month. Let's see, the stock price goes down, so let's pile on the calls. How does that make sense?
Apparently, options traders have faith in GOOG heading into earnings.
With stronger competition nipping at its heels, a lukewarm chart that is depending on support at 400, and unwavering faith from the Street, GOOG is vulnerable.
Anything less than a strong report and outlook could send the bulls for the exits. If that happens, $400 will be a distant memory. So, consider buying puts on GOOG.
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Jon Lewis is the co-editor of The Winning Edge trading service designed to help you make options profits around corporate earnings and other market events. For more information about Jon, read his bio here.
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