DailyPlay – Adjusting Trade (GOOGL) – December 10, 2024

GOOGL Bullish Trade Adjustment

Investment Rationale

Alphabet Inc. (GOOGL) recently broke out above its $170 resistance level, and we maintain an upside target near its most recent high in the $190 area. This breakout provides a strong risk/reward opportunity for adding bullish exposure. Based on this outlook, we purchased a long call option on December 6th for the Daily Play portfolio when the stock was at 172.64.

Long 1 GOOGL Mar 21, 2025 $160 Call @ $18.38 Debit per Contract.

This position is profitable, and we believe the time is right to sell a near-term call to offset some of the time premium paid for the long call with the March 21st expiration.

Sell to Open 1 GOOGL Dec 27, 2024 $185 Call @ $0.78 Credit per Contract

Trade Details

Strategy Details

Strategy: Adjustment of a bullish Call

Direction: Resulting in a new bullish Call Diagonal Spread

Details: Sell to Open 1 GOOGL Dec 27, 2024 $185 Call @ $0.78 Credit per Contract

Total Risk: This trade has a max risk of $1,760 (1 Contract x $1,760) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $1,760 to select the # contracts for your portfolio.

Original Position:

• Long 1 GOOGL Mar 21, 2025 $160 Call @ $18.38 Debit per Contract.

Resulting Position:

• Long 1 GOOGL Mar 21, 2025 $160 Call @ $18.38 Debit per Contract
• Short 1 GOOGL Dec 27, 2024 $185 Call @ $0.78 Credit per Contract
• The net Debit for the new position is $17.60

Adjusting the Trade

Use the following details to Adjust the GOOGL trade on your trading platform.

PLEASE NOTE that these prices are based on Monday’s closing prices.