Good let them it is a short term scam to try to make people believe they will take over the pc business from Dell. When it all comes out in the wash you will have a company (google) who will have wasted billions trying something they will fail miserably at. Just another reason the stock will be selling off by 70% off whatever high it finally makes whether it is $500 or $600 we are getting very very close to what will be Googles all time highs.
not much of a hedge there son. you will need to sell 2 of the 480's to hedge better. remember what the delta of the option is. then go delta neutral. sell something that will decay faster like March
ah, there is a difference between commercial traders and "large" traders or insitutitutions. the only one that are typically right are the commercial traders, who tend to dabble in futures and commodities.
for example, if you keep tabs on the investor's intelligence survey, you will clearly see this on a long term chart. this survey is the bullish vs. bearish percentage of analysts (from the likes of Piper J, Goldman, CSFB, etc) in the industry. when this hits above 60%, it has marked a short to interim term top in almost every case while it works it's way back down below 60%. this past week (dec 29th), it hit above 60% for the first time since the end of last year, and you remember the decline in the first half of last year don't you?
so, the point...analyst and insitutions are NOT on the "right" side. they are considered "Large Traders". Commercials and specialists are different beasts and are historically on the right side of the markets. Now they can act on behalf of institutions, but they cannot have any dealings with IBD or Research departments of those companies...they act independently.
that's what i was trying to say. it's just another data point, to be considered with everything else.
I recommend a long position with a Jan 07 out of the money call (480?) (sell short) as a hedge. This strategy worked nicely in 05 as the time premium is steep which is a nice bonus as it deflates over time on the short side. Still a net bullish position. As a bonus you can cover the short call later in the year and hold the long goog for a 1yr cap gain tax benefit.