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Buy Call GOOGL

September 22, 2022
Sell Half of your GOOGL February 120 Calls for $2.50 or more.

The market has reacted negatively to the Federal Reserve announcement yesterday, though in reality, it was acting poorly even before then. And while we have been very patient on the buy side and have aggressively taken partial profits when the opportunity has presented itself, today let’s lower our bullish exposure by selling AR, which is running out of time, and half of our GOOGL calls.

To execute this trade you need to:
Sell to Close HALF of your GOOGL February 120 Calls

After these sales today, we will step back and evaluate how the market looks in the days to come.

August 12, 2022
Buy the Alphabet (GOOGL) February 120 Calls (exp. 2/17/2023) for $12.50 or less.

As I’ve written several times in recent weeks, the call buying in GOOGL/GOOG has been steadily bullish. This activity is continuing today as a trader bought the following position this morning, as well as positions from the last week:

Today: Buyer of 4,300 Alphabet (GOOGL) October 130 Calls for $2.30 – Stock at 120Yesterday: Buyer of 4,000 Google (GOOG) September 120 Calls for $5.40 – Stock at 122Yesterday: Buyer of 3,000 Google (GOOG) September 125 Calls for $2.40 – Stock at 120.5Previous week: Buyer of 1,000 Alphabet (GOOGL) June 145 Calls (exp. 2024) for $13.50 – Stock at 117Previous week: Buyer of 15,000 Alphabet (GOOGL) November 105 Calls for $16.82 – Stock at 117 (rolled from August calls).

And while the market may be due to rest after a dramatic run higher, I like the way GOOGL/GOOG has shaped up in recent weeks, as well as this option activity, and am going to add a call position to the portfolio today.

To execute this trade you need to:
Buy to Open the GOOGL February 120 Calls

The most you can lose on this trade is the premium paid, or $1,250 per call purchased.

The risks I see in this trade are general market risk, as well as the much-anticipated Department of Justice antitrust suit against Alphabet. According to Bloomberg, the DOJ could sue Alphabet as soon as next month.

And while the DOJ risk is significant, the market handled the initial headlines surrounding this event quite well, which leads me to believe, longer term, this will not be a major event. For that reason, as well as the potentially strengthening market, I am going to add a GOOGL February call position today.

PositionGOOGL February 120 Calls
Position StrategyBuy Call
Opened DateAugust 12, 2022
ExpirationFebruary 17, 2023
Net Price11.90
Jacob Mintz is a professional options trader and editor of Cabot Options Trader. Using his proprietary options scans, Jacob creates and manages positions in equities based on unusual option activity and risk/reward.