Google began trading options on Friday, and interest in the financial instruments appeared strong.
Reuters reported that more than 69,000 Google options traded on Friday, very heavy trading for options in an individual name. More than 31,000 of the trades were in calls — essentially, bets that the stock will go up — and nearly 38,000 were in puts — bets that the stock will fall.
Options don’t usually begin trading in a new issue until months after it debuts, but heavy interest in Google’s IPO led options exchanges to bring them to market sooner. However, because of Google’s brief trading history, pricing on the options could be an inexact science for some time.
In other Google news, underwriters reportedly exercised a 2.94 million share overallotment from the IPO, adding roughly another $300 million to the $1.7 billion IPO. And Yahoo reportedly sold much of the shares it received from Google in a settlement earlier this month.
The market rose Friday on a better than expected consumer sentiment reading and another reading of second quarter GDP that wasn’t as bad as feared.
The Nasdaq rose 9 to 1862, the S&P 500 added 2 to 1107, and the Dow climbed 21 to 10,195. Volume declined to 848 million shares on the NYSE, and 1.02 billion on the Nasdaq. Advancers led 22-10 on the NYSE, and 19-11 on the Nasdaq. Upside volume was 67% on the NYSE, and 69% on the Nasdaq. New highs-new lows were 99-14 on the NYSE, and 43-35 on the Nasdaq.
PeopleSoft rose 1% on renewed interest from Oracle
.
Apple slipped on competition from HP
.
Tech Data , Novellus
and Catalyst
rose on their earnings news, while TiVo
and Intellisync
fell on their results.
QLogic gained 5% on reports of market share gains.
And eCost.com had a lukewarm debut on the Nasdaq.
