Monday Chart Perspective -
Covering $SPY $IWM $QQQ $XLF $XLE and more $NFLX
Google had one of those weeks, where the stock embarks on a massive rally and turns penny options into multi dollar options.
Some big potential gains on the out of the money weekly strikes bought earlier this week.
$.25 to $17 or $250 into $17,000
$.15 to $12 or $150 into $12,000
Here some of the trades on GOOGLE in the chat room earlier today:
Google reports earnings after the bell tomorrow. Historically the company has reported the night before monthly options are set to expire. This creates the potential for substantial profits trading out of the money options. On the flip side if GOOGLE stock makes a small move post earnings out of the money option contracts will drop dramatically in value. The potential reward of significant profit comes with incredible risk to your capital. In April of 2007 GOOGLE rocketed some 20% higher. CALL contracts went through the roof a $.55 Call contract was worth over $55 the next trading session. That is $1,100 into $110,000.