Google (GOOG, $322.99, down $58.01) ought to have an interesting day. Check this out. The stock folded like a bad poker hand Tuesday, finishing 15% lower for the day. But wait. In after-hours trading the stock was up $90.56 to $413.55. Talk about the potential for a wipe-out as far as trading goes. If you were trading Google three minutes before the market closed and two minutes afterwards, consider those trades mulligans.

It seems there were some “erroneous orders” in the stock which have been cancelled by the Nasdaq. The erroneous orders routed to the Nasdaq from another market center were the culprit. I’ve read conflicting stories where Google’s low for the day was $26 and $212. If the stock hit a low of $26, that would have been a $350+ drop! Even at $212, the stock was down $170? Give me a break. And you wonder if there is market manipulation going on. The proof is in the pudding.

Tuesday’s closing price for Google was adjusted to $400.52, up nearly $20 from Monday’s close.

Something’s in the air with Google. I’m taking a look at the October 330 puts (GGDVF, $4.10, down $4.55) and the October 480 calls (GOPJI, $4.95, up $0.85) but the quotes for these two options may vary and I want to see what Google does before trying a strangle trade and to make sure the options aren’t skewed.

This is not your normal market and these aren’t your normal rules. There is so much action out there that we are going to have to pick and choose our battles carefully. The last thing you want to do is get caught up in the euphoric or panic mood that Wall Street seems to be displaying on a daily basis. Google should be releasing earnings sometime this month but there is no announced date, yet. The October options expire on the 17th.

Hold off on Google until things get clearer as we might have to go to the November options. Either way, Google could be setting up for a 100-point move one way or the other.

Rick Rouse