Buying 100 shares of $Alphabet(GOOGL)$ costs about $32,822.
A January 2028 $300 call LEAP costs around $7,435 — giving you leveraged upside exposure with roughly 77% less upfront capital.
The trade setup
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Strike: $300
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Expiration: Jan 21, 2028
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Premium: ~$74.35 per share
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Breakeven at expiration: $374.35
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Time to expiration: 456 days
Potential returns at expiration
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$GOOGL at $400: ~34%
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$GOOGL at $425: ~68%
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$GOOGL at $490: ~156%
For comparison, 100 shares bought at $328.22 would gain about 49% if the stock reached $490.
Why the bullish case? 🐂
☁️ Google Cloud revenue surged 82% to $24.8B last quarter, while operating income more than tripled from $2.8B to $8.8B.
📦 Alphabet reported $519.5B in contracted backlog, including $513.9B tied to Google Cloud. Just over half is expected to be recognized over the next 24 months.
🔎 Total revenue rose 24% to $119.8B, with Search revenue up 17% to $63.3B.
🤖 The Gemini app has 950M monthly active users, while Google's model APIs process roughly 22B tokens per minute, up from 16B the previous quarter.
⚡ Anthropic has committed to multiple gigawatts of next-generation TPU capacity expected to come online starting in 2027.
One major consideration: earnings.
$GOOGL reports Q3 results on Oct. 28. Implied volatility is elevated heading into the event, so waiting until after earnings could help avoid paying an inflated premium.
January 2028 provides more time for the AI and Cloud growth story to play out, but time alone doesn't guarantee a profitable trade.
⚠️ Know the risk: The maximum loss is the entire premium — approximately $7,435 per contract. If $GOOGL falls, stagnates, or fails to rise enough before expiration, the LEAP can lose substantial value or expire worthless.
Use a position size you can afford to lose entirely.
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