Google stock is greatly effected by market swings. Yesterday's slump in the market brought Google stock down over $15 and broke the local uptrend to the downside. Today's action was an interesting one:
As the broad market climbed to gain back some of yesterday's losses, so Google climbed with it. However, it climbed with less steam than usual. Finally, in early afternoon, Google failed to continue to climb and headed down from there. Even though it closed positive, the price movement was depressed. As the S&P500 gained 1%, Google was barely able to hold a 0.1% increase.
I take this as a sign that bull traders on Google may have run out of steam in the short run and may be looking to take profits. I will look for tomorrow to see follow through.
The GOOG Sept 500 calls traded as low as 0.65/share today. If there is follow through to the down side tomorrow I will buy the 500 calls back at 0.50/share and sell lower strike calls for more premium.
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