That’s Merrill Lynch analyst Justin Post’s latest advice to clients, with Google stock down a bit ahead of its April 19 earnings report:
“Investors can enhance returns to long stock positions by adding delta over the next month given our expectation that shares will trade up 10% by April 20th options expiry. We recommend adding an April 20th $460/$510 1×1 bull call spread to existing long positions. If the stock finishes between $490-$510 on April 20th the investor can yield a 9%-17% return vs. 3%-7% return for stock-only positions (based from last session’s close).”
But what if Yahoo! really is making a dent in the juggernaut?