Thursday October 8, 07:04 PM
STOCKS NEWS US-Credit Suisse suggests Google call spread
Stocks on the move
Real (Frankfurt: BJU.F - news) -time Equity news
U.S. stock market report
1340 ET 08Oct2009 Credit Suisse: Buy Google Oct call spread before earnings
-----------------------------------------------------------------------------
Investors should consider Google Inc (NASDAQ: GOOG - news) call spreads ahead of its
third-quarter results to capture a potential rally in the shares of the U.S.
Internet search engine from positive earnings revisions, wrote Credit Suisse
equity derivatives strategist Sveinn Palsson in a note. He recommends buying an
October $540/$560 call spread for $4.20 in premium to take advantage of the
flat put-to-call skew. With Google options now only implying a 6.7 percent
swing on earnings due on Oct. 15, the October options are unlikely to decay
much ahead of the announcement, he added. Separately on Wednesday, Oppenheimer
& Co raised its price target on Google shares by 15 percent to $565 and
maintained its 'outperform' rating on expectations of strong results. The
brokerage raised its third-quarter adjusted profit estimate to $5.68 a share
from $5.46 a share.
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
