Here’s my strategy to trade a GOOG rally

GOOG meets my criteria for fundamentals, value, and quality technical entry.
Here, I want to introduce an option approach to trading this expensive stock.


Top 1% IBD earnings and Composite rankings; 4 quarter earnings growth (94 to 114
to 143 to 134%) and sales growth (105 to 101 to 93 to 98%) to $4.5 billion over
the past 12 months; 8.5% upward earnings’ revision in past 90 days; 42.5%
increase to 479 in the number of mutual funds owning shares over the past
quarter; and improving IBD industry group rankings (bottom 65 of 197 in past 6
months, top 30 in past 3 months, and top 25 in past week).


’05 and ’06 PEG (price/earnings/earnings growth) ratios of 0.43 and 1.30 show
the value left at these lofty prices.