GOOG's E/R will be a BLOWOUT because it is ripping off of competitors' market shares as well as expanding hugely worldwide...particularly Europe, China but also Japan with a a huge potential in India, etc. Bodes VERY, VERY well for future outlook and growth in 2006-2008 yearly estimates (which will be raised within 48 hours from now). A subsequent MAJOR spike up WILL occur. We could surpass the ENORMOUS after hours run-up of last E/R. But, we may also see such a spike triggered suddenly BEFORE tomorrow's close. The institutional buying may have to kick in AHEAD of tomorrow's close instead of after it.
We will probably see a continuation of the general market rally and that of the QQQQs. There is a chance that Greenspan will STOP raising rates and announce this at 2:15pm ET on tomorrow...just prior to GOOG's E/R. This looks to be a veritable PERFECT BULL STORM brewing...a TOTAL juggernaut in the making!
LOAD UP ON SHARES AND CALLS AT ANY PROVOCATION WHEN GOOG WOBBLES AROUND ON ANY WEAKNESSES!! DO IT! Buy SOME protection in puts...buying those cheaply (when GOOG shows strengths) but limit yourself to a ratio of 10%-20% (MAX!) on puts and/or other bearish strategies, to at least 80%-90% calls and/or bullish strategies.
ONLY IF WARRANTED: As I said last week...Be willing to take profits during any and all SIGNIFICANT volatility swings on your calls and puts, so you can increase your capital and re-enter at lower costs on pullbacks. As an example, if you bought the FEB 440 calls for $22 on GOOG weakness and we get a spike on GOOG to 440+ so as to produce a VERY good gain on those calls BUT it looks like GOOG is petering out and will roll back over to well below 440 again (which it DID continue to do since I first posted this...it did over and over again and may still do so), be willing to cash out...wait for the decline....jumping back in at a lower prices with MORE and more contracts than before. Accumulate in this manner and load the cannons for the CERTAIN and HUGE coming spike ahead. Same goes on any calls. Same goes, in reverse (dump on significant GOOG pullbacks and reload when GOOG strengthens up again), on any puts.
We COULD hit the 480s-490s intraday BEFORE the close tomorrow. We could hit 550 in after hours or within 48 hours after tomorrow's close. I think we will see as high as 525 to 550 intraday this week!
GOOG holding at or well above all key MAs. Looks good to me. Go for those 420, 430, and 440 call options ANY MONTHS...the FEB calls are very promising leverage-wise. Perhaps the 450s and 460s will be very good leverage-wise, too. We will be well in the money on all calls up to at least 480-500 before OE on FEB 17. GET OUT OF ALL FEB CALLS WHEN WE SPIKE UP. ROLL OUT INTO FARTHER AHEAD MONTHS AS SOON AS FEASIBLE AND NO LATER THAN THIS FRIDAY!
YHOO got an upgrade this morning, and YHOO's CEO has admitted that GOOG has kicked their ass! By all accounts, with channel checking, etc, even by the admission of YHOO's OWN CEO, GOOG is going to deliver BLOW OUT NUMBERS on the top and bottom lines! And the writing will be on the wall that this stock is going to be seeing a share price of $1300 before DEC 31, 2006 when multiples anywhere near the current ones are applied.
GOOG will surpass $2.30 EPS....perhaps 2.50+..and revenues will be as off the charts as some are already speculating.
ALL strategies are workable and usable as tools at various times as appropriate on ANY stock. With GOOG, and its HUGE volatility, one HAS to use all. There simply is no SINGLE way to always make money with GOOG stock and options. There are many ways. I wish ALL of you the best with YOUR ways! And I invite you to share them, as I've tried to do and will continue to try to do.
"Googillionaire"..........a term I created years ago to symbolize the massive gains that were made on GOOG's ride up from $87 to what became the $750 all time high area. Hell of a ride. Up and down, to be sure. Especially when, as I and tens of thousands of other traders have done, one uses the additional leverage to be had going long AND short calls and puts along the way.
Now, the market has...and is continuing to...reset. All new fortunes were made by shorting, writing calls, and investing in puts on the ride down from the Oct 31, 2007 area high tide (using calls as hedges along the way). And new fortunes have been being made since the infamous 666 S&P bottom of early March 2009, by long positions, writing puts, and investing in calls (using puts as hedges..as ALWAYS). Attempts now to take down the market for what will be, probably, the final blow before the real signs of a definitive bull market becomes a very possible reality.
Meanwhile, GOOG and all of its aggravation....especially if one was to have merely "invested" in it as a sort of "buy and hold" mentality/syndrome....has turned this stock into a daytrading or short term trading vehicle up and down. Along with many other stocks that can be VERY lucrative..and have been...with their volatilty gyrations. GOOG, BIDU, CME, and DNDN are some key favorites of mine on a daily basis. But also, much less often, targets such as AAPL, RIMM, POT, MOS, FSLR, GS, ISRG, and several key bull and bear ETF's).
Anyway...these are the times that try traders souls. They are also the times that can change your lives and your families' lives...forever. You all are getting a very unique opportunity to turn back the clock and get a second chance (as has been obvious since March) to recapture past losses and to buy VERY successful companies AT OR BELOW fire sale prices.
GOOG, BIDU, CME, ISRG, and many, many others....100s of others....will take out by a large margin, imo, their old all time highs in the not too distant future. Lots of room for cap gains until then, so...ENJOY!
Just be SURE to manage your risk with an appropriate hedge..one way or the other...ALL along the way. As I have ALWAYS indicated to do...ALWAYS.
I wish you all well in your lives and on your trades.......
They are a bunch of idiots. Bashing is the work of morons. any moron can bash. Morons can't see the horizon. When google was 130 - 230 - 330 and now 430, these idiots are the same predicting the end. They need to put the right label which is the end of their damaged brain. I ignore them and won't waste my time listening to them. ITM is a heck of a guy and was ahead of the market in many instances.
The future will show that this pullback hides a rally of 30 to 40 points. these losers will go into a long silence when this stock reaches $600.