Google Earnings Play

Yesterday (1/20/11) I bought the Google 585/590 call spread for $4.40. Google was trading around $630 at the time. Based on recent news that Google had increased market share in the search maket, general positive news around recovery in the advertising market, and Google general ability to generate huge profits I predicted an earnings beat that would suppot the stock price. Google does tend to spend heavily on hiring and investment and has hurt the stock price on previous earnings announcements. After the close, Google announced solid earnings and the stock was up in after hours trading. I will be able to sell the spread today for $4.90-$4.95 for a nice quick gain.