Thursday, December 11, 2014

Where Will Google Stock Be in 1 Year? This $3.4 Million Option Provides an Estimate

Someone placed a big bet today on where GOOGL will be in January 2016, buying 1,000 contracts for $585 call options at $34.20. This $3.42 million bet has been placed with the expectation that GOOGL will be above $620 by January 15, 2016 (today it closed at $532.11).

Given GOOGL stock's poor performance this year, do they know something we don't? Online commentators speculate that this may have something to do with Google Glass, Glass self-driving cars, or simply someone hedging an existing position.