Google shares surged past the $700 mark for the first time in pre-market trading, after reports hit the street that Internet search giant is in talks with Verizon to bring a mobile phone to the market that's custom-built to work with Google applications. Though it's previously only existed as rumor, the Street is already clamoring for news of the so-called G-Phone.

Google is said to be in serious discussions with Dow component Verizon, and hopes to have the phone on the market by mid-2008. The phone would feature a Google operating system and Google applications.

The shares of Google are now gapped significantly above support from their 10-month moving average, though support from the stock's 10-day trendline is close at hand. GOOG closed yesterday at $694.77, a gain of more than 2%. Meanwhile, option traders are leaning bearish on the Internet behemoth; its Schaeffer's put/call open interest ratio of 0.84 is higher than 78% of other such readings taken during the past year.