That activity prompted me to exit my longs, as I mentioned on CNBC. And it wound up being a good move, given the company's premature release of quarterly results that tanked the stock !
The puts caught fire after that, and premiums shot up as investors scrambled for protection. The October 700s, which started the day more than $50 of out the money were quickly in play and at one point traded for more than $60.
Overall, Thursday was a pretty crazy day for Google, which was halted down 9.03 percent at $687.30 at the time of this writing. Even before they stopped the trading, more than 160,000 option contracts had changed hands in the name. That's triple the daily average, and made it the fifth busiest stock on our systems.
—By CNBC Contributor Jon "DRJ" Najarian
Additional News: Google's Miss Highlights Big Worry on Wall Street
Additional Views: Google's Big Miss Just Another Reason to Sell: Pro
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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.