To The Moon

$Alphabet(GOOG)$ experienced a significant downturn following its earnings report, causing it to drop below a prior support level of approximately 127. This level has since transformed into a formidable resistance point, and the price of GOOG has recently encountered resistance at this level, resulting in rejection.

GOOG Daily Chart

The anticipated 30-day price movement for GOOG stands at 5.2%. Bullish expectations point towards a target of $131.82, while bearish sentiments suggest a lower target of $118.78.

Expected Move of GOOG

Here are a couple of options trading ideas to consider while keeping the expected price movement in mind:

Put Spread (Bearish)

Consider a bearish strategy by purchasing a 125 put option and simultaneously selling a 119 put option with an expiration date of December 1. This trade will yield a profit if the stock remains below $123.95 at the time of expiration, with a probability of profit estimated at 45%.

Iron Butterfly (Neutral)

For a neutral stance on the stock, you can employ an iron butterfly strategy. This entails buying a 132 call option, selling a 125 call option, buying a 118 put option, and selling a 125 put option, all with a December 1 expiration date. Your profit will be maximized if the stock price remains between $130.2 and $119.8 at expiration, with a probability of profit estimated at 61%.

In conclusion, my overall sentiment toward GOOG is predominantly neutral to slightly bearish, as reflected in the options trading strategies I've considered. While I've explored a bearish put spread and a neutral iron butterfly, both strategies indicate a cautious outlook on the stock's performance. However, it's essential to continually monitor market conditions and news developments to make well-informed decisions as the situation evolves.

Share your insights and opinions on where you think GOOG's price might be headed in the near future.

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Disclaimer: My views and insights are provided for informational purposes only. I do not offer financial or investment advice. It’s essential to conduct your research before making any financial decisions. The volatile nature of financial markets necessitates caution and due diligence.