Alphabet(US:GOOG) Youtube·2025-10-24 13:18Core Viewpoint - Alphabet (Google) has shown strong outperformance against its communication sector and the broader market, with a 55.5% increase over the past year, significantly outpacing the Mag 7, which rose by almost 33% during the same period [2][3]. Technical Analysis - Google's stock has broken out from a rising wedge pattern, typically seen as bearish, but has moved to the upside, indicating potential bullish momentum [3][5]. - Key price levels to watch include 225 and 236 as significant low points, with a recent high around 256 and a new resistance level at 257.33 [4][6]. - A harami candle pattern suggests indecision and loss of momentum, which is common before earnings announcements [7]. - The stock remains above its moving averages, with the closest being the 21-day EMA around 247 [8]. Volume and Price Levels - The volume profile indicates heavy trading activity around the current price, with notable support near 195 and a fair value estimate around 216 based on standard deviation channels [9][10]. - The expected price move for November 21st is approximately ±9.7%, with downside support around 232 and potential resistance at 255 to 272 [11][12]. Options Strategy - A bullish call diagonal strategy is proposed, involving buying a 255 strike call for the November 7th weekly options and selling a 270 strike call for the October 31st weekly options, taking advantage of the implied volatility dispersion [15][19]. - The risk for this strategy is approximately $700 per spread, with profitability expected above 258 to 259 [17][18]. - The implied volatility for the November options is around 51%, while the near-term options have a higher implied volatility of about 70%, which benefits the entry point for the bullish strategy [19].