|
|
http://www.bloomberg.com/news/20 ... ays.html?cmpid=yhoo
Google Inc. (GOOG)’s bullish options should be bought before the owner of the world’s largest search engine reports earnings tomorrow because results may exceed analysts’ estimates, Goldman Sachs Group Inc. said.
Katherine Fogertey and John Marshall, derivatives strategists at Goldman Sachs, recommended buying April $575 calls, which expire at the end of this week. The shares rose 1 percent to $576.28 as of 4 p.m. in New York and are down 3 percent this year.
Google options are at “reasonable” levels and the Mountain View, California-based company is one of the industry’s most attractive in terms of cash generation and revenue growth, the strategists wrote, citing James Mitchell, a Goldman Sachs Internet analyst. On average, analysts surveyed by Bloomberg estimate Google will report first-quarter profit excluding some items of $8.12 a share. Mitchell rates Google at “buy” and has a six-month share forecast of $720.
“Analysts did not raise estimates into the quarter,” the strategists wrote. “Mitchell believes that this sets up GOOG to achieve, and perhaps beat, expectations, which could be a positive catalyst for shares given lowered expectations.”
Implied volatility, the key gauge of option prices, for at- the-money contracts expiring in 30 days is 29.80, down from this year’s peak of 34.17 on May 16. The April $575 calls rose 23 percent to $14.20 today.
The options are attractive because their prices imply that the shares will have a one-day gain or loss of about 6 percent following the quarterly report, about the median level for the past eight quarters, the New York-based strategists said.
Calls give the right to buy a security for a certain amount, the strike price, by a set date. Investors use options to guard against fluctuations in the price of securities they own, speculate on share-price moves or bet that volatility, or stock swings, will rise or fall.
disclosure: no position on GOOG. YMYD. |
|
狗仔卡
发表于 2011-4-13 09:20 PM
提升卡
置顶卡
沉默卡
喧嚣卡
变色卡
