Option Focus | Alphabet’s $1.03 Million Long-Dated Call Buy on 2026 $360 Strike Signals Institutional Bullish Conviction Amid Cheap Volatility

Option Witch07:01

Alphabet closed at $342.88, up 1.53% from the prior session.

The standout large trade was a $1.03 million call purchase, with buyers taking 1,200 GOOG 360.0 calls expiring on 2026-10-16. The block flow was entirely skewed toward upside call buying with no meaningful bearish offset, signaling positioning for further appreciation over time rather than hedging against downside.

>>>Start OPTIONS trading & earn up to SGD 200 in rewards!

Options Indicators

GOOG’s implied volatility is 29.33%, and with an IV percentile of 11.16%, current option volatility sits on the low side relative to its own recent history, indicating that options are cheaply priced rather than expensive. The IV/HV ratio of 1.08 suggests implied volatility is only modestly above historical volatility, reinforcing the view that current premium levels are relatively restrained and not showing signs of aggressive overpricing.

The Call/Put volume ratio is 3.29.

Large Trades

A call purchase worth $1.03 million was the standout large trade, with buyers taking 1,200 GOOG 360.0 calls expiring on 2026-10-16. With the stock reference price at $342.88, the strike sits out of the money, making this a clear upside directional bet that seeks leveraged participation in a longer-dated advance. The transaction’s ask-side execution signal also reinforces that this was an aggressive bullish opening or expansion-style position rather than passive premium selling.

Overall, the large-trade flow points to a bullish outlook on GOOG. The session’s notable block activity was entirely skewed toward upside call buying, with no meaningful large-trade bearish offset, suggesting institutional participants are positioning for further appreciation over time rather than hedging against downside. The preference for a long-dated out-of-the-money call indicates confidence in a sustained upside move while keeping risk defined to the premium paid.

Strategy Reference

For traders seeking to sell premium in a low-IV environment, a deep out-of-the-money put such as the 2026-10-16 $240 strike would carry a very low assignment probability; alternatively, a bull call spread using the $360/$420 strikes on the same expiration can reduce upfront capital and margin requirements while retaining leveraged upside exposure.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment