SELL BACK THE PUTS AT 14.00 CREDIT OR BETTER, THIS WILL ELIMINATE ALL RISK OF THE TRADE, AND GIVE US FREE JUL13 585 CALLS TO HOLD FOR POTENTIAL FOMC RALLY.

THIS IS ALSO A FREE HEDGE AGAINST ALL MY EXISTING SHORTS AS WELL IN OTHER EQUITIES NOW.

Order Details

Action Amount Option Description Price Duration Qualifiers
Sell to Close 2 Contracts GOOG Put GOOG Jul 13 2012 585.00 Put Limit 14.00 Day None
Est. Trade Value: $2,800.00
Est. Commission: $6.25
Estimated Fee: $0.13
Net Cash Result: $2,793.62
Quote GOOG   572.22   -9.48 Bid 572.16 Ask 572.46 Volume 1,022,184
GOOG JUL 13 2012 585.00 PUT
Bid 13.50
Ask 14.00
Last 13.70
Change 6.70 [95.71%]
Volume 279
Delta -0.78
Open Int 1,298
Desc GOOG Jul 13 2012 585.00 Put

*****UPDATE***** 7/10/12

GOOGLE SCREWED THE POOCH ON US! THEY CHANGED THE EARNINGS RELEASE YESTERDAY AFTER WE OPENED THIS TRADE.

WE HAVE DECIDED TO KEEP THE TRADE OPEN A LITTLE LONGER TO HOPEFULLY CATCH A BIG ENOUGH MOVE. IF WE CATCH THAT MOVE WE PLAN ON SELLING ONE SIDE OF THE STRADDLE AT 13.75 OR MORE CREDIT, AND LEAVE THE OTHER SIDE OPEN FOR A FREE PLAY.

***********************************************************************************************************************************************************************************************************************************

NO MORE THAN 18% ACCOUNT TO THIS TRADE, NO MATTER WHAT UNLESS $GOOG PINS AT 585 THERE WILL BE SOME VALUE IN THE TRADE.

WE ARE ENTERING THE STRADDLE EARLY BECAUSE IV (VOLATILITY PREMIUMS) WILL BE BID UP IN THE NEXT FEW DAYS. $GOOG SHOULD MOVE 15-35 POINTS ON THIS EARNINGS REPORT. MAYBE MORE, IF DISAPPOINTS LIKE I THINK THEY WILL, BUT HAVE THE CALL SIDE JUST IN CASE.

THE TRADE HAS ALREADY EXECUTED @13.75 WHILE WRITING THIS POST.

@11:15AM 7/9/12

BREAKEVEN IS 585-13.75=571.25

OR 585+13.75=598.75

PROFIT ANYWHERE <571.25 OR >598.75 AFTER EARNINGS

Order Details

Leg Action Contracts Option Description Price Duration
Leg 1 Buy to Open 2 GOOG Call GOOG Jul 13 2012 585.00 Call Debit 13.75 Day Order
Leg 2 Buy to Open 2 GOOG Put GOOG Jul 13 2012 585.00 Put
Est. Trade Value: $2,750.00
Est. Commission: $7.55
Estimated Fee: $0.10
Funds required for this trade: $2,757.65
Quote GOOG   583.70   -2.28 Bid 583.70 Ask 583.93 Volume 615,762
GOOG JUL 13 2012 585.00 CALL
GOOG JUL 13 2012 585.00 PUT
Bid 6.20 7.20
Ask 6.50 7.60
Last 6.40 7.50
Change -1.00 [-13.51%] 0.60 [8.70%]
Volume 1,038 967
Delta 0.48 -0.52
Open Int 892 711
Desc GOOG Jul 13 2012 585.00 Call GOOG Jul 13 2012 585.00 Put
Net Quote
Bid
13.40debit
Mid
13.75debit
Ask (natural)
14.10debit
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