After flirting with $600 earlier this month, Google (GOOG, $581.00, up $4.70) seems destined to fall short of that mark before the May options expire on Friday. Although a $20 move either way is not out of the norm for Google, option traders seem to be locking in on two prices.

Today’s close at $580 (roughly) kept the May 580 strike prices busy, naturally, but it was the action in the May 590 calls (GOOER, $1.05, down $0.35) and the May 570 puts (GOPQQ, $0.75, down $2.05) that option traders placed their chips on.

With the May options expiring on Friday, there is a lot of bets on Google making a $10-$12 swing. If Google is at $592 then the may 590 calls would represent a double because they would be $2 in-the-money. If Google is at $568-$569 then the May 570 puts would be $1-$2 in-the-money.

Then again, if Google stays flat on Friday then both parties are wrong. Either way, it is going to be an interesting showdown between the bulls and bears over where Google settles by tomorrow’s closing bell.

Rick Rouse
Rick@OptionsMentoring.com