GOOG Options Trade Idea
$Alphabet(GOOG)$ experienced a significant downturn following its earnings report, causing it to drop below a prior support level of approximately 127. This level has since transformed into a formidable resistance point, and the price of GOOG has recently encountered resistance at this level, resulting in rejection.
The anticipated 30-day price movement for GOOG stands at 5.2%. Bullish expectations point towards a target of $131.82, while bearish sentiments suggest a lower target of $118.78.
Here are a couple of options trading ideas to consider while keeping the expected price movement in mind:
Put Spread (Bearish)
Consider a bearish strategy by purchasing a 125 put option and simultaneously selling a 119 put option with an expiration date of December 1. This trade will yield a profit if the stock remains below $123.95 at the time of expiration, with a probability of profit estimated at 45%.
Iron Butterfly (Neutral)
For a neutral stance on the stock, you can employ an iron butterfly strategy. This entails buying a 132 call option, selling a 125 call option, buying a 118 put option, and selling a 125 put option, all with a December 1 expiration date. Your profit will be maximized if the stock price remains between $130.2 and $119.8 at expiration, with a probability of profit estimated at 61%.
In conclusion, my overall sentiment toward GOOG is predominantly neutral to slightly bearish, as reflected in the options trading strategies I've considered. While I've explored a bearish put spread and a neutral iron butterfly, both strategies indicate a cautious outlook on the stock's performance. However, it's essential to continually monitor market conditions and news developments to make well-informed decisions as the situation evolves.
Share your insights and opinions on where you think GOOG's price might be headed in the near future.
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Disclaimer: My views and insights are provided for informational purposes only. I do not offer financial or investment advice. It’s essential to conduct your research before making any financial decisions. The volatile nature of financial markets necessitates caution and due diligence.
Modify on 2023-11-01 22:41
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.
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