{"id":499,"date":"2009-11-19T08:21:21","date_gmt":"2009-11-19T13:21:21","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=499"},"modified":"2009-11-19T08:21:21","modified_gmt":"2009-11-19T13:21:21","slug":"reloading-the-goog-post-earnings-trade","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/","title":{"rendered":"Reloading the GOOG Post-Earnings Trade"},"content":{"rendered":"

When I examined the trading patterns in Google’s stock (GOOG) between earnings reports<\/a>, I found little consistency for forming a trading strategy. For October’s earnings cycle, I chose to play one of the few promising historical patterns: 67% of the times that GOOG opened up in response to earnings, the maximum close until the next earnings report was at least 10% above the post-earnings open. If history repeats itself, this means GOOG should hit at least $600 by mid-January.<\/p>\n

On Wednesday, GOOG essentially hit my aggressive price target of $580 before November’s expiration of options<\/a>. However, I locked in the profit on the corresponding call spread play. This week, I reloaded the GOOG post-earnings play by going long the January 600\/610 call spread which is the spread I would have picked last month if using a less aggressive trade.<\/p>\n

The strategy for the call spread remains the same as last time. If GOOG pulls back, I will cover the short side of the spread once the stock reaches oversold conditions. I will then try to ride the long side of the spread the rest of the way. Otherwise, I ride the current upward price trend.<\/p>\n

The chart below shows that GOOG closed its post-earnings up-gap like so many other stocks this earnings season<\/a>. However, at that point, GOOG reached oversold conditions (stochastics not shown) and managed to bounce promptly. Within a week, GOOG recovered its post-earnings gains, and it has printed fresh 16-17 month highs ever since. The anemic trading volume during this run is the biggest red flag for the stock. The new multi-month highs should<\/strong> be attracting more participation, not less. This poor response motivated the conservative structure of this next post-earnings trade and the contingency planning for a pullback.<\/p>\n

\"After
After recovering from post-earnings fade, GOOG powers higher on low volume<\/figcaption><\/figure>\n

Be careful out there!<\/p>\n

Full disclosure: long GOOG call spread<\/p>\n","protected":false},"excerpt":{"rendered":"

When I examined the trading patterns in Google’s stock (GOOG) between earnings reports, I found little consistency for forming a trading strategy. For October’s earnings cycle, I chose to play one of the few promising historical patterns: 67% of the times that GOOG opened up in response to earnings, the maximum close until the next … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[220,135,62],"tags":[231,230],"class_list":["post-499","post","type-post","status-publish","format-standard","hentry","category-earnings","category-stock-market-trading","category-technical-analysis","tag-goog","tag-google"],"yoast_head":"\nReloading the GOOG Post-Earnings Trade - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reloading the GOOG Post-Earnings Trade - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"When I examined the trading patterns in Google’s stock (GOOG) between earnings reports, I found little consistency for forming a trading strategy. For October’s earnings cycle, I chose to play one of the few promising historical patterns: 67% of the times that GOOG opened up in response to earnings, the maximum close until the next ... Read more\" \/>\n<meta property=\"og:url\" content=\"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/\" \/>\n<meta property=\"og:site_name\" content=\"ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"article:published_time\" content=\"2009-11-19T13:21:21+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2009\/11\/091118_GOOG.jpg\" \/>\n<meta name=\"author\" content=\"Dr. Duru\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@drduru\" \/>\n<meta name=\"twitter:site\" content=\"@drduru\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dr. Duru\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/\"},\"author\":{\"name\":\"Dr. Duru\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"headline\":\"Reloading the GOOG Post-Earnings Trade\",\"datePublished\":\"2009-11-19T13:21:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/\"},\"wordCount\":324,\"commentCount\":3,\"publisher\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"image\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2009\\\/11\\\/091118_GOOG.jpg\",\"keywords\":[\"GOOG\",\"Google\"],\"articleSection\":[\"Earnings\",\"Stock Market Trading\",\"Technical Analysis\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/\",\"name\":\"Reloading the GOOG Post-Earnings Trade - ONE-TWENTY TWO: Trading Financial Markets\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2009\\\/11\\\/091118_GOOG.jpg\",\"datePublished\":\"2009-11-19T13:21:21+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/#primaryimage\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2009\\\/11\\\/091118_GOOG.jpg\",\"contentUrl\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2009\\\/11\\\/091118_GOOG.jpg\",\"width\":\"525\",\"height\":\"437\",\"caption\":\"After recovering from post-earnings fade, GOOG powers higher on low volume\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2009\\\/11\\\/19\\\/reloading-the-goog-post-earnings-trade\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Reloading the GOOG Post-Earnings Trade\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#website\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/\",\"name\":\"ONE-TWENTY TWO: Trading Financial Markets\",\"description\":\"Exploring the poetry in financial markets for students of money and economy since the year 2000.\",\"publisher\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\",\"name\":\"Dr. Duru\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"contentUrl\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"width\":900,\"height\":100,\"caption\":\"Dr. Duru\"},\"logo\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.drduru.com\\\/onetwentytwo\",\"https:\\\/\\\/www.instagram.com\\\/drduru_market_breadth\\\/\",\"https:\\\/\\\/x.com\\\/drduru\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Reloading the GOOG Post-Earnings Trade - ONE-TWENTY TWO: Trading Financial Markets","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/","og_locale":"en_US","og_type":"article","og_title":"Reloading the GOOG Post-Earnings Trade - ONE-TWENTY TWO: Trading Financial Markets","og_description":"When I examined the trading patterns in Google’s stock (GOOG) between earnings reports, I found little consistency for forming a trading strategy. For October’s earnings cycle, I chose to play one of the few promising historical patterns: 67% of the times that GOOG opened up in response to earnings, the maximum close until the next ... Read more","og_url":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/","og_site_name":"ONE-TWENTY TWO: Trading Financial Markets","article_published_time":"2009-11-19T13:21:21+00:00","og_image":[{"url":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2009\/11\/091118_GOOG.jpg","type":"","width":"","height":""}],"author":"Dr. Duru","twitter_card":"summary_large_image","twitter_creator":"@drduru","twitter_site":"@drduru","twitter_misc":{"Written by":"Dr. Duru","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/#article","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/"},"author":{"name":"Dr. Duru","@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"headline":"Reloading the GOOG Post-Earnings Trade","datePublished":"2009-11-19T13:21:21+00:00","mainEntityOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/"},"wordCount":324,"commentCount":3,"publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/#primaryimage"},"thumbnailUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2009\/11\/091118_GOOG.jpg","keywords":["GOOG","Google"],"articleSection":["Earnings","Stock Market Trading","Technical Analysis"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/","url":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/","name":"Reloading the GOOG Post-Earnings Trade - ONE-TWENTY TWO: Trading Financial Markets","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#website"},"primaryImageOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/#primaryimage"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/#primaryimage"},"thumbnailUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2009\/11\/091118_GOOG.jpg","datePublished":"2009-11-19T13:21:21+00:00","breadcrumb":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/#primaryimage","url":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2009\/11\/091118_GOOG.jpg","contentUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2009\/11\/091118_GOOG.jpg","width":"525","height":"437","caption":"After recovering from post-earnings fade, GOOG powers higher on low volume"},{"@type":"BreadcrumbList","@id":"https:\/\/drduru.com\/onetwentytwo\/2009\/11\/19\/reloading-the-goog-post-earnings-trade\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/drduru.com\/onetwentytwo\/"},{"@type":"ListItem","position":2,"name":"Reloading the GOOG Post-Earnings Trade"}]},{"@type":"WebSite","@id":"https:\/\/drduru.com\/onetwentytwo\/#website","url":"https:\/\/drduru.com\/onetwentytwo\/","name":"ONE-TWENTY TWO: Trading Financial Markets","description":"Exploring the poetry in financial markets for students of money and economy since the year 2000.","publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/drduru.com\/onetwentytwo\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":["Person","Organization"],"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0","name":"Dr. Duru","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","url":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","contentUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","width":900,"height":100,"caption":"Dr. Duru"},"logo":{"@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg"},"sameAs":["http:\/\/www.drduru.com\/onetwentytwo","https:\/\/www.instagram.com\/drduru_market_breadth\/","https:\/\/x.com\/drduru"]}]}},"_links":{"self":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/comments?post=499"}],"version-history":[{"count":6,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/499\/revisions"}],"predecessor-version":[{"id":546,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/499\/revisions\/546"}],"wp:attachment":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/media?parent=499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/categories?post=499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/tags?post=499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}