Thursday, February 28, 2008

Lottery Play - Google

If you belief Google is in a down turn hen here is a lottery play

Buy Goog March 400 strike Put for .85

trade:

Buy 10 contracts GOP OT @ .85

Reason behind trade: If google falls even $10 then implied Volatility would spike and as such the put would be worth much more. Google does not have to get to $400 but has to fall for the put to increase in value. If you pick this trade then make sure you put in tight stops after a 20% gain. Put a sell stop if put falls to .60 cents.

Be careful out there and always trade with a plan.

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