Google earnings delivers a Googly
Apologies to all my American friends and (any non-British, Indian or Aussie and others not part of the former empire), the term Googly refers to a Cricket ball bowled (pitched) that is completely out of the blue. I think the closest analogy would be the “curved ball”.
GOOG earnings disappointed, mostly held down by its disastrous Motorola (mobile) division. After market yesterday, GOOG was trading down as much as $55, down to $860.
In the Trading ideas, we sensed this might be an issue, and moved our strikes lower to 860/840. And GOOG touched 862 after hours.
This morning however, things seem to be stabilizing, and GOOG looks like its going to start around $880.
Our GOOG Iron Condor should expire completely worthless making a total profit of $12,000. Watch video here
CMG Short strangle
We spotted a good short strangle opportunity at 2 standard deviations away from the price, and this has turned out to be a great trade as well. We’ll let this expire for a profit of $3,300 in 1 day.
On a related note, the YTD totals including trades in the Trading Ideas service as well as the OptionEDGE has crossed a profit of 100K for the year. This works out to a 25% return this year already, and we have almost half the year to go.
Check out the performance below (Click to enlarge)