It would be great if he would comment today on his calls position in GOOG…

Google’s earnings report is tonight.  Here’s an email I got this morning from a subscriber:

I know Cody cannot provide advice, but it would be great if he would comment today on his calls position in GOOG and if he’s holding through earnings tonight.

Thx, great service.


The short answer is yes, of course, I’m holding my Google through earnings tonight.  I’m not a day trader and this Google position isn’t about trying to catch or avoid a 5-10% move tomorrow.   I do expect that Google’s going to report some very strong earnings and revenue numbers tonight.  And frankly, if the markets aren’t down on geopolitical panic tomorrow like they are today, I’d expect the market to react favorably to that earnings report tonight.

But again, it’s crucial to know the difference between a trade and an investment.  There are certainly times that I will buy calls or puts for a quick trade in front of an earnings report, and then I’d obviously really be focused on that single report and the near-term action it causes.

There are other times that we are betting on longer-term revolutions that will take years to play out.

And to be sure, such trading vs investing isn’t mutually exclusive.  Sometimes, we’ll have a position we’ve held for years and we’ll buy some calls or puts before the report to juice or hedge the position.

Anyway, I’m planning on holding Google for the next five to ten years at least so I’m not overly concerned about whether Google’s earnings over the last 90 days is a nickel or two above or below what some idiot analysts guessed the number would be.   Though I do expect Google’s more likely on the upside of that consensus guess than the downside.  At least this time.