Google drives me nuts! I love the company, love the software and lose money in the option chains! So with a miss in earnings today, I decided that once again I’ll throw out some cash and see what happens.  Luckily this time it panned out!

Here is the story: Last night Google ( GOOG) announced their earnings. Although they were up something ridiculous like 84%, the stock tanked over night. I decided that I’d try to take advantage of the volatility in the options and see if I can get a bit of profit from them. Here is the trade:

• Bought Feb 2006 370 Put for $5.30 Debit
• Later that day: Sold Feb 2006 370 Put for $5.80 Credit

• Result: $0.50 Profit or 9.4% profit in a few hours

Finally, I made money on a Google trade!

A related note about Google… I’m guessing its time for Google to come back to earth. It will be interesting to see what happens over the next few weeks/months. I’m going to stay on the Google sidelines for a while, maybe I’ll play again but not for a while. I think it’s time to move back to the core strategies - indexes, indexes, indexes

Categories: Investing, Options Trading