Options Expert Talks Google Ahead Of Earnings

Benzinga’s #PreMarket Prep recently featured options expert and Create Income With Options Spreads author Nic Chahine.

Ahead of Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) reporting earnings, Chahine mentioned that his last trade on Google was a credit call spread, which he exited around the $572.5 level because he did not have “any conviction” on the stock.

This week, however, he noted that activity is appearing around the $530 level on GOOG options with support forming in put positions from the $520 level up and saw "resistance starting at $530” up to $550, based on open interest.

Chahine indicated that traders would be building positions at those levels into the earnings report.

“When the earnings hit, all these open interest [numbers] are really nothing because it all depends on which direction they want to run and then the momentum gathers,” according to Chahine.

Google is scheduled to report earnings after the close Thursday and recently traded at $503.95, down 1.19 percent.

Check out the full interview in the video below:

Don’t forget to tune in to Benzinga’s #PreMarket Prep broadcast Monday-Friday 8-9:45 a.m. ET for a live, interactive morning show with veteran traders and featured finance industry experts ready to answer your questions for the trading day.