For the record, I never advised shorting nor shorted myself. I just saw the head and shoulders top forming and figured I'd start a thread. I can think of a quite a few trading strategies that one could use to play a retracement other than just outright shorting the underlying: A) Shorting the OneChicago GOOG futures. B) Buying ATM puts on the underlying. C) Buying a bear call or put spread D) Buying a put backspread on GOOG E) Going long GOOG underlying after a retracement, or adding to an exisitng position on the dip. F) Selling OTM calls on an existing position to lower cost of ownership. There are lots of ways to trade a retracement without outright shorting. My doing some chartwork on GOOG was not meant as an endorsement/suggestion of any actual trading strategy. Just an attempt to follow the price action for a popular stock. -T
What a reversal today! Running out of buyers? It moved down fast today. This week is also the option exiration week.
To zxcv1fu & you GOOG traders out there ---> Bears are growling with glee as GOOG could not break its 50dma of just under 293 (roughly touched it & retraced 0n 8-15 --> a big retracement day as Mr z correctly pointed out). Now the big news of the 14 million 2ndary is driving GOOG down big!! I took a small short position @ around 290 when (after) GOOG bounced off 50d ma. The odds for deep OTM Puts have just gone way up-may be ITM!! GOOD LUCK & GOOD TRADING !!
Never know which way GOOG will gap. I am still waiting for my cheap OTM puts to turn expensive This site does not have today's data yet: http://www.stockta.com/cgi-bin/analysis.pl?symb=GOOG&num1=567&cobrand=&mode=stock There are many option trading strategies, but I think OTM cheap options give the biggest bang for the dollar if there is a large movement. The drawdown is very little. I'd use near the money spread for earning play.
Wonder when will GOOG reach $180. It is smart for the company to sell some shares to lock in some cash for the company.
Obviously, Google's decision to unload their stock will add downward pressure to the price. Here is a new daily chart.
No doubt your right tony & with GOOG down 5 @ 280 on best volume in almost 1 month it could easily see climax selling shortly. The main offset I can think of right now is the expected addition of GOOG to the S&P500 since its now > 1year old.
Cramer said GOOG is basically gonna double or triple. Used 07 estimates of $10 and a 35% growth which he said he thinks is low. Said a company with this high growth deserves a multiple of 2x growth which would be 70. 70x$10 is GOOG= 700. Gotta love it.