Options Expert On Google Ahead Of Earnings

Benzinga’s #PreMarket Prep morning show featured options expert and Create Income With Options Spreads Author Nic Chahine.

Ahead of Google Inc GOOG GOOGL reporting earnings, Chahine mentioned that his last trade on Google was a credit call spread which he exited around the 572.5 level because he did not have “any conviction” on the stock.

This week, however, he noted that activity is appearing around the $530 level on GOOG options with support forming in Put positions from the $520 level up and saw "resistance starting at $530” up to $550, based on open interest.

Chahine indicated that traders would be building positions at those levels into the earnings report.

“When the earnings hit, all these open interest [numbers] are really nothing because it all depends on which direction they want to run and then the momentum gathers,” according to Chahine.
 

Don’t forget to tune in to Benzinga’s #PreMarket Prep broadcast Monday-Friday 8-9:45 a.m. ET for a live, interactive morning show with veteran traders and featured finance industry experts ready to answer your questions for the trading day.