Options traders who predicted Google Inc. would beat estimates earned as much as 17,530 percent on their investments today, the most-profitable bet among all U.S. equity derivatives.
Contracts giving the right to buy Google shares for $530 before the close of trading today jumped as high as $17.63 from their 10-cent closing price yesterday. That gain almost matched the 18,760 percent advance in the Dow Jones Industrial Average since the beginning of 1900, according to Bloomberg data.
There’s a good Google Group’s discussion about this here.
Wow!! As soon as I get some disposable “play money,” options trading looks like it could be fun or at least the closest thing to Vegas without actually being there. I wonder if there’s a conservative way to trade options? Would that be buying puts and calls? (At this point I only know enough about options to know that those things exist…for what purpose yet I don’t know.)