Is Quantum Computing a Reason to Buy Alphabet Stock?
Dec 14, 2024
Understanding the Recent Options Activity for Alphabet (GOOGL)
Recent trends indicate that high-profile investors are adopting bearish strategies concerning Alphabet Inc. (GOOGL). This is a noteworthy development for retail traders and warrants attention.
According to publicly available options data tracked by market analysts, there has been an unusual pattern of trading involving Alphabet options. Today alone, the analysis spotlighted 10 significant trades. This level of activity is not typical and could suggest that informed investors are making moves ahead of potential developments.
The analysis reveals a divided sentiment among these traders: approximately 30% hold bullish positions, while a notable 60% are leaning bearish. The trading activities include one put option valued at $29,197 against nine call options, which totaled around $471,143.
Anticipated Price Movements
Analyzing the volume and open interest of these contracts shows that larger investors have been focusing on a price range between $160.00 and $195.00 for Alphabet over the past three months. These targets are significant as they reflect market expectations.
Trends in Volume and Open Interest
Monitoring volume and open interest is crucial for effective options trading. Such data helps traders gauge the liquidity and demand for Alphabet's options across various strike prices. Recent observations indicate shifts in the volume and open interest for both calls and puts traded by influential investors.
Detailed Options Activity
Here’s a summary table of the noteworthy options activity observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GOOGL | CALL | TRADE | BEARISH | 02/21/25 | $17.85 | $17.3 | $17.5 | $160.00 | $105.0K | 2.3K | 266 |
| GOOGL | CALL | TRADE | NEUTRAL | 06/20/25 | $17.5 | $17.3 | $17.4 | $170.00 | $86.9K | 15.7K | 59 |
| GOOGL | CALL | TRADE | BULLISH | 12/06/24 | $0.61 | $0.6 | $0.61 | $175.00 | $65.3K | 19.6K | 5.5K |
| GOOGL | CALL | SWEEP | BEARISH | 12/06/24 | $2.79 | $2.65 | $2.68 | $170.00 | $52.9K | 4.4K | 385 |
| GOOGL | CALL | SWEEP | BEARISH | 12/20/24 | $1.02 | $1.0 | $1.0 | $180.00 | $48.4K | 30.4K | 1.6K |
About Alphabet Inc.
Alphabet Inc. is the parent company of Google, based in California. It earns nearly 90% of its revenue from Google services, mainly from advertising sales. Besides advertising, Alphabet also generates income through subscription services, platform fees, and device sales such as Chromebooks and Pixel smartphones. Additionally, their cloud computing service, Google Cloud Platform (GCP), contributes about 10% of total revenue.
Current Market Situation for Alphabet
- GOOGL's recent trading volume reached 5,867,700, showing a 0.87% increase to $172.84.
- The stock's relative strength index (RSI) suggests it is currently neutral, falling between overbought and oversold conditions.
- Alphabet's next earnings report is anticipated in 55 days.
Professional Analyst Outlook
In the past month, analysts have proposed various ratings for GOOGL, with an average target price of $185.00. One notable analysis from Loop Capital recommends a Hold rating, maintaining the $185 target.
Conclusion
Trading options carries distinct risks and potential rewards. It's vital for traders to manage these risks by becoming well-informed, adapting strategies as needed, and observing numerous indicators. Keeping an eye on recent options trading activity can provide valuable insights for decision-making.
Alphabet, Options, Investors