Options Corner: GOOGL

Core Insights - Google (Alphabet) is outperforming not only its own communications sector but also the S&P 500, making it the best performer among the "magnificent seven" tech stocks [2] - The stock has shown a rising wedge pattern in its chart, indicating potential new trends and price movements [3][4] - Recent price action has seen a retreat after reaching new intraday highs, with current levels around 340, which is a previous peak [5] Technical Analysis - Moving averages indicate that the 5-day EMA aligns with the white trend line near 339, while the monthly 21-day EMA aligns with the blue trend line at around 330 [6] - The stock is currently at all-time highs, with the options market pricing in a potential move of approximately 6%, or $19 to $20, in either direction on a one-day basis [8] Trading Strategy - A bearish trade strategy is suggested, involving selling an out-of-the-money call vertical with a 355 strike call and buying a 365 strike call to limit risk [10][12] - The trade could yield a credit of approximately 275, with a break-even point at 357.75, which is nearly 5% above the current share price [11][12] - There is a 70% probability that the stock will finish below the 355 strike at expiration, making this a favorable speculative trade [12]