Option Focus | Alphabet's Large Trader Sells $390 Calls Expiring 2026, Collecting Premium and Capping Upside as Bearish Flow Dominates

Option Witch07:01

Alphabet closed at USD 341.45, down 0.61%.

Large options activity in GOOG leaned decisively bearish, with the standout trade being the sale of 4,840 contracts at the 390.0 strike expiring in August 2026. The $0.08 million call sale stood in contrast to zero bullish block flow, signaling a market preference for collecting premium and capping upside rather than chasing a near-term rally.

>>>Click to claim your commission-free cards before trading!

Options Indicators

GOOG’s implied volatility is 29.16%, and with an IV percentile of 10.36%, current option pricing sits at the low end of its historical range, indicating volatility is subdued and options are cheaply priced. The IV/HV ratio of 0.63 further suggests implied volatility is running below realized volatility, reinforcing the view that premium levels are relatively inexpensive rather than stretched.

The Call/Put volume ratio is 2.39.

Large Trades

A CALL sale worth $0.08 million was the standout large trade, with 4,840 contracts sold at the 390.0 strike expiring on 2026-08-28. With GOOG referenced at $341.45, this call was out of the money, making it a bearish-to-neutral positioning that suggests the trader was likely expressing a view that the stock would remain below the strike by expiration while collecting option premium. As a single-leg short call, the trade reflects limited upside expectations and a willingness to sell volatility at a level meaningfully above the current share price.

Overall sentiment in GOOG large trades was bearish. Total bullish flow was $0.00 million versus total bearish flow of $0.08 million, leaving a net difference of $0.08 million to the bearish side. With all of the detected large-trade activity concentrated in an out-of-the-money call sale and no offsetting bullish block flow, the tape points to cautious or mildly negative institutional sentiment, with traders favoring premium collection and upside capping rather than positioning for a strong near-term rally.

Strategy Reference

For a low assignment probability, a seller could consider an OTM call at the 390.0 strike or higher, mirroring the observed large-trade structure but ensuring the strike sits well above both current price and near-term technical resistance.

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