Google is presenting an incredible opportunity for binary options traders. On Friday, the stock declined even though the company released positive news. This creates a perfect storm for upward momentum at the start of the trading week. Today, we'll talk about why Google declined on Friday, why I believe the stock is likely to climb during the beginning of the week, and what binary options traders can do to take advantage of the trends. So, let's get right to it…
Why Google Had A Rough Friday
Investors started to sell off on Friday after hearing of insider trading in Google. It was recently announced that the President and Director of the company, Sergey Brin sold a large amount of shares in the company on October 27th. Throughout the day, Brin processed a series of 18 transactions, selling 33,332 shares of the company by the end of the day. This equates to $23,980,788 in shares sold. Following the sale of shares, Brin now maintains 21,136,047 shares valued at a total of $15,152,854,815.
Insider selling is something that investors tend to watch very closely. After all, insiders know everything there is to know about the company. Therefore, when they sell a large amount of shares, investors get the notion that the value of the stock is likely to decline. Adversely, when insiders buy a large amount of shares, investors get the notion that the value of the company is likely to increase. So, based on the $23+ million deal, investors got cold feet on Friday, sending the value of the stock down.
Why I Believe That Google Is Likely To Climb On Monday
Several companies have worked hard to create what is known as the internet of things, and it has been working very well. However, Google is taking this internet of things to the next level. The company announced that it is now working to combine Chrome OS with Android. For those of you who don't know, Chrome OS is an operating system designed for desktop and laptop computers. Android is an operating system designed for mobile phones and tablets. By combining the two, Google is working to create a relationship between computers and cell phones. While several companies create operating systems for both mobile and non-mobile devices, Google will be the first to combine the two. This is likely to increase demand for Google driven devices and will act as a catalyst for the stock.
It's also worthwhile to mention that Google recently reported earnings. Investors absolutely loved what they saw from the company. In the quarter, Google beat both earnings and revenue expectations, sending the stock skyrocketing! While investors may have been a bit concerned about insider selling on Friday, I believe that those concerns are likely to fade as investors start to focus on the positivity we've seen out of the company recently.
How Binary Options Traders Can Take Advantage Of The Trends
Considering the fact that Google went through losses on Friday combined with the positive news we've seen with regard to both earnings and operating system plans, I'm expecting to see growth. With that said, when markets open on Monday, binary options traders should watch for call option opportunities in order to ride the trends up to profits.
What Do You Think?
Where do you think Google is headed and why? Let us know in the comments below, also read more financial news by TheBinaryAdvisor!
[Image Courtesy of CIO]