On the SPOT blog (03/14/2022) [A..]
Updated: Aug 31, 2022
Pi day (3/14) in the US today! Nasdaq closed in deep red and Dow gave up most of its earlier gains perhaps because investors seemed worried about shutdown in China following another outbreak that could worsen the supply chain issues. This could also affect stocks of companies that rely a lot on business in China. So, I thought perhaps Google might be a safe bet since it exited Chine long time ago. To my surprise, it was also in red (irrational behavior to honor Pi day ?! :-)). I turned to my "goto" reference i.e. the micro-gScores to see what was going on with GOOGL. Apparently, there seemed to be some "bearish" calls/puts activity with respect to current stock price. For a stock so "inexpensive" (in terms of relative PE, future growth potential) and not even in China seemed irrational to me. That said, it also made me question what information I don't have about Google that is making traders bet against it. Perhaps the impending interest rate hike this week makes some traders do indiscriminate migration out of tech (purely a guess) or a recent acquisition or some regulatory activity. Cause is unknown to me. So, as usual, I turned cautious and decided to put it on my close watch (it didn't appear in discounted zone but the price is lower than the price when last time it was in discounted zone).
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