Mrzorro
07-24

Alphabet's $200 Call Options Attract Investors, Speculators Ahead of Earnings


Investors, traders and speculators piled onto $Alphabet(GOOGL)$   options that give the holders the right to buy the stock at $200. That could signal optimism for further gains for the tech giant that's already jumped by more than half over the past year.

Open interest totaled 130,880 contracts for such $200 calls across 18 expiration dates stretching through Dec. 18, 2026, data compiled by moomoo showed. That makes those options the most popular for Google. For those expiring by Friday, the $200 strike price attracted the second heaviest volume ahead of earnings results, behind the $190 calls.  

The company that's racing against other tech giants to capitalize on generative artificial intelligence is expected to report second quarter earnings of $1.85 a share on revenue of about $84.29 billion, analysts' estimates compiled by Capital IQ showed. The financial results are due after the market closes Tuesday.

Analysts are looking for indications on the impact of the rollout of AI overviews in Alphabet's Google search business and its contribution to revenue growth, MarketWatch reported. The company is in direct competition with $Microsoft(MSFT)$  's Bing search offering which is powered by OpenAI's ChatGPT.

More than 6,750 call options giving the holder the right to buy Alphabet shares at $190 changed hands as of 11:56 a.m. in New York, making it the most active of all those tied to the tech giant. The price of those calls rose to $2.87 a share from $1.60 last Friday. 

As the stock moves higher hours before the earnings results are released, capital trend data is showing that outflows are outpacing inflows by $90.41 million, adding to the monthly outflow.



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