Look bullish on Google and get on the bus with the price difference

$Google (GOOG) $Announced a series of very solid results for Q3 FY25 following the earnings release, leading its share price to jump sharply after the earnings release, with total revenue increasing 16% year over year to $102.3 billion (well above consensus estimates).

Google's Services segment, which includes the Search and YouTube segments and Google Networks, grew 14% year over year to an impressive $87.1 billion. Digging further, search revenue grew 15% year over year to $56.6 billion, suggesting that the fundamentals of this business line aren't making any real impact.

YouTube advertising and subscriptions, platforms, and devices all performed well, rising 15% and 21% year over year to $10.3 billion and $12.9 billion, respectively.

On November 6, the U.S. technology sector generally weakened, with the Nasdaq index leading the decline in major stock indexes.

Market sentiment has been suppressed by multiple factors: on the one hand, the latest data showed that the number of layoffs in the United States hit a 22-year high in October, raising concerns about an economic slowdown; On the other hand, AI concepts and large technology stocks have high valuations after sharp rises in the previous period, and investors have begun to take profits. Coupled with the delayed release of some macroeconomic data, the market's uncertainty about the Fed's policy prospects, declining risk appetite, and the outflow of funds from high-valued technology stocks, the entire technology sector has experienced a significant correction.

Google stock remains steady, bucking the trend amid a broad decline in the tech sectorUp 0.21%, strong toughness.

Bull Call Spread

1. Strategy structure

InvestorBUYA call option with a lower strike price (K ₁ = 275, premium $10.2),

meanwhileSellCall option with higher strike price (K ₂ = 280, premium $5.91).

Both options have the same expiration date. Investors gain upside gain potential by buying low-strike call options, while partially offsetting costs by selling high-strike options, thus forming aBullish but limited riskBull Call Spread combination.

2. Initial net expenditure

• Net premium expenditure = 10.2 − 5.91 =$4.29/Share

• Corresponding total expenditure = 4.29 × 100 =$429/contract

• Investors are required to pay this net premium when opening a position, which is the strategy'sMaximum potential loss。

3. Maximum profit

• Condition: The price of the underlying asset at maturity is ≥ USD 280

• Results:

  • The K ₁ (275) call option is exercised, and (280 − 275) = $5/share gain;

  • The K ₂ (280) call option is exercised by the other party, limiting further profits.

• Maximum Profit = (K ₂ − K ₁) − Net Expenditure = (280 − 275) − 4.29 =$0.71/Share

• Corresponding total profit = 0.71 × 100 =$71/contract

4. Maximum loss

• Condition: The price of the underlying asset at maturity is ≤ US $275

• Result: Both call options lapsed, and the investor lost all net premium payouts.

• Maximum Loss = Net Expense =$4.29/Share

• Corresponding total loss = 4.29 × 100 =$429/contract

5. Break-even point

• Calculation formula: Strike price (lower) + net payout

• Breakeven = 275 + 4.29 =$279.29

• When the stock price is above $279.29 → investor profit

• When the stock price is below $279.29 → investors lose money

6. Risk and return characteristics

• Maximum benefit: $71/contract

• Maximum loss: $429/contract

• Profit-loss ratio: about 1: 6.0

• Applicable scenarios: Investors expect the target price to beModest rise, but not much above $280

• Strategic positioning: A stable bullish strategy, using a small cost to gain limited rising returns, with fixed risks and capped returns.

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