Market Overview

TD Ameritrade Chief Strategist Sees Potential 4% Move In Google Shares

Share:
TD Ameritrade Chief Strategist Sees Potential 4% Move In Google Shares
Related GOOG
Some Big-Name Equity Analysts Are Switching Teams
Analysts Overwhelmingly Bullish Following Broadcom's Monster Quarter
Michael Burry: Current Holdings and a Change of Style (GuruFocus)
Related GOOGL
Some Big-Name Equity Analysts Are Switching Teams
Analysts Overwhelmingly Bullish Following Broadcom's Monster Quarter
Gurus Shop in Robust Consumer Cyclical and Technology Sectors (GuruFocus)

Speaking to Benzinga ahead of the Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) earnings release, TD Ameritrade Chief Strategist JJ Kinahan said that “options activity in Google tends to be muted” and it is “not a big trading stock” for options traders.

For example, Wednesday morning, Kinahan noted that just over 10,000 options had traded on Google while 168,000 options had traded on Facebook Inc (NASDAQ: FB). Kinahan also indicated that due to the high price of Google’s stock, the premium values on options is also relatively high, making it more difficult to trade options for smaller accounts.

Based on the implied volatility in the options market, Kinahan said the market expects an approximate $22 move in the shares (up or down), or just over 4 percent, after the company's earnings release.

Because the trading volume is relatively low, it was difficult to get a clear picture on market expectations, however, the weekly $550 calls had “the most interest so far [on Wednesday]." The probability of touching the $500 level “through Friday is only about 28 percent” and approximately 33 percent on GOOGL shares, according to Kinahan.

Google closed at $510.00 Wednesday, down 1.66 percent; GOOGL share class closed at $512.43, down 1.68 percent.

Kevin Riley and Brianna Valleskey contributed to this report.

Latest Ratings for GOOG

DateFirmActionFromTo
Jul 2016JP MorganMaintainsOverweight
Apr 2016Deutsche BankMaintainsBuy
Feb 2016Deutsche BankMaintainsBuy

View More Analyst Ratings for GOOG
View the Latest Analyst Ratings

Posted-In: JJ Kinahan TD AmeritradeAnalyst Color Previews Exclusives Analyst Ratings Trading Ideas Best of Benzinga

 

Related Articles (GOOG + FB)

View Comments and Join the Discussion!