Shares of Internet-search giant Google (GOOG: sentiment, chart, options) are being pummeled in after-hours trading following the company's second-quarter earnings report. At last check, GOOG was off more than 11% and trading below the 500 level. For the quarter, GOOG said that net income rose to $1.25 billion, or $3.92 per share. Net revenue rose to $3.9 billion. Excluding special items, Google said earnings were $4.63 per share, well below analysts' expectations for $4.74 per share.

Expectations were complacent heading into the report, as the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.70 ranked just above the midpoint of its annual range. However, deep-out-of-the-money call options were popular in today's trading. Specifically, some 12,611 calls changed hands at the stock's July 610 strike, with another 10,191 contracts trading on the July 620 call. Open interest at these front-month strikes were 9,169 contracts and 7,268 contracts, respectively - indicating that we could see an increase in open interest following translation. These calls are extremely speculative, considering that July options expire after the close tomorrow.