How Options Saved My Google Trade: Najarian

Kimihiro Hoshino | AFP | Getty Images

Traders took profits early Thursday in Google, and it was the right move.

This is a great stock, and it had been running like a champ ahead of its earnings release. I was riding that rally with call spreads, an option strategy that lets you really leverage a pop.

But this morning, the options paper showed traders jumping off the bandwagon. Our data systems at OptionMonster detected heavy selling in the October 800 calls early in the session, which means that traders didn't see much chance of the stock ending the week above that level.