GOOG the gift that keeps on giving!

each picture to expand it.


Continuing with my GOOG trade, yesterday I decided, after much though, to rollover my Nov. shorts to Dec. Good thing too because the IV was higher in the back month, which added to my credit.

Note that the transformation, although bearish, does not completely close the door to a possible rally from here. Additionally, I have locked in at least 2/3 of my profits and free most of the original capital in the trade. Although I am hoping for a decline in the stock price, I anticipate that I will be changing my Jan 660 puts to a lower strike price. That move amounts to adding a bull put spread to my position. The way I look at it is taking profits to the downside. The long calls and puts now form a strangle, which could keep expanding as the long puts go lower and lower.

The only reason to leave the trade is an IV spike, above the usual top for this stock.

Since January, I have entered 3 positions like this on GOOG, and now it has given me the best results so far this year, even above AQNT... remember? the company that MSFT bought earlier this year?

Here are the details on that trade, back in May:
http://stockoftheday.blogspot.com/2007/05/secret-in-my-trading-success.html


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