1:20pm (EST)

The bulls are stampeding Wall Street and continue to push the market to fresh all-time highs following a number of positive earnings reports.

Google (GOOG, $1,003.99, $115.20) knocked it out of ballpark after beating estimates by 40 cents.  The company reported a profit of $10.74 a share versus expectations for $10.34 a share.  Revenue came in at $14.89 billion and also beat estimates for $14.79 billion.

We haven’t traded Google as much as we use to due to the high option premiums but there could have been some sweet money made if call options were bought ahead of yesterday’s close.

With shares at $888, the options were pricing a 5% price swing and based on those projections, the stock was expected to trade at $940 or roughly $820 following the news.  Given the currently in the market, we figured a 10% move was possible and that would have put the stock near $990 or $800.

The suit-and-ties have been bearish on the stock as many expected a miss but Google surprised to the upside with its first beat in 2 years on both the top and bottom lines.

We have been hot with earnings and we should’ve listed some Google call options when we were doing our homework for the Weekly Wrap last weekend.  We listed a number of trades that have gained 100%, 200%, and even 400% this week and while we caught some of that action, we missed one that would have turned $1,100 in over $20,000!

As you can see from the Yahoo Finance quote below, the Google November 1000 calls (GOOG131116C01000000, $20.86, up $19.76) closed at $1.10 yesterday and are up a jaw-dropping 1,796%!

GOOG101813

A 10 contract option trade using these call options would have cost $1,100.  Right now, you could cash out for $20,860.  Amazing!  If you could only afford to do 1 contract it would have cost $110.  Right now, you could cash out for $2,860.

This is the power of options and why we do our homework.  Options are the most lucrative investment you will ever discover and why we play the game.

Of course, if Google would have missed expectations shares could have been southbound and below $800.  If that had been the case, these call options would have gotten spanked and probably would have been down 75% or more.

Next week promises to be just as exciting and we will once again be covering a bevy of possible earnings trades in our Weekly Wrap.  Some of the trades will be transferred to our Daily Watch List but it is impossible for us to list them all because of the current trades and work we do for our Daily updates.  This is why we have a great research team and why the newsletters are separate publications.

If you are not yet a subscriber to our Weekly Wrap that is 82-5 since inception, you can click here for a 1 time offer to get signed up for a 2-week trial for under $30 use coupon code (SAVE-50) through our sister site.  You can also use the coupon to purchase a longer subscription.

You can also register to win an American Silver Eagle by guessing the Dow by clicking here.

If you have any questions email us.

We will have more upcoming details on the monthly contest in our Weekly Wrap and in our Daily but for now we urge you to get on board with the Weekly Wrap as we will be profiling a number of possible earnings trades for next week.  Special Note:  If you are a current Weekly Wrap subscriber, please click on the Guess the Dow link for your chance to win the American Silver Dollar as well.  The contest is at no cost to you and shipping is in the house if you win.

We have also started recommending LEAP option trades for the Weekly Wrap and we have already hit on a few triple-digits winners.  These types of trades can be just as powerful as the Google trade we just profiled.

We did have an earnings trade that made us some bank today and we have Profits Alerts on trade that made us nearly 200%.  Naturally, we have been pleased with how this week has turned out despite the zombie drama out of DC.  Now that things have calmed down, the focus will be on earnings and the market and we couldn’t be happier.

The Dow is currently up 5 points to 15,376 while the S&P 500 is higher by 8 points to 1,740.  The Nasdaq is zooming 39 points to 3,902.

We have some last minute updates on our current trades including Profit Alerts on 2 trades that returned 150% and 174%!  We will be watching the close into the weekend and if you don’t hear from us again before the bell, we will be back Sunday night with the Weekly Wrap and on Monday morning with the Daily.  Until then, have a great weekend everyone and make sure you get signed up to enter the Guess the Dow contest!