At least one trader apparently believes that Google will keep going after a big rally in the last year.
optionMONSTER’s Heat Seeker tracking program detected a large bullish trade in the search giant, entailing the purchase of 1,000 January 2014 800 calls for $56.50 and the sale of an equal number of January 2014 900 calls for $23. That translates into a cost of $33.50.
The trade represents a $3.35 million bet that GOOG will reach $900 by early next year. If it does, the position will be worth $10 million–a profit of 199 percent. This strategy, know as a call vertical spread, risks much less capital than buying shares at current levels.
— Option Monster