The granddaddy of earnings reports (at least for me) occurs today after the close. Google (GOOG – 752.59) will release their earnings report for the past quarter along with making forward looking statements. On average the stock has moved about 6% (higher or lower) for their last eight earnings releases. The option market is expecting about the same as the GOOG Oct 750 Straddle is priced at 37.00 (750 Call @ 17.50 + 750 Put @ 19.50). One of the reasons I like to watch the reaction of GOOG shares (and options) to earnings is in the past the straddle has been a pretty accurate gauge on the subsequent price reaction from GOOG to the earnings report. Also, the straddle expires after the close tomorrow so the reaction is all about the price change and not necessarily about a change in IV. Right now the market is saying up or down 37 points. In less than 24 hours we will know if the market got it right.