DailyPlay – Opening Trade (GOOGL) – January 24, 2025

GOOGL Bullish Opening Trade Signal

Investment Rationale

Alphabet Inc. (GOOGL) recently broke out above its $190 resistance level, printing a new all-time high while outperforming the S&P 500. This suggests further upside potential on strong momentum.

GOOGL trades in line with its peers but is expected to grow faster than its competitors and is far more profitable, suggesting substantial upside potential. GOOGL has a forward P/E ratio of 21.88x, slightly above the industry average of 20.54x. However, GOOGL’s expected earnings per share (EPS) growth is 19.15%, well above the industry average of 11.69%, and its expected revenue growth is 12.02%, compared to the industry’s 8.18%. Additionally, GOOGL boasts net margins of 27.74%, far surpassing the industry average of 13.82%.

The company is expected to report earnings on Tuesday, February 4th, after market close.

GOOGL – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 GOOGL Feb 28 $195/$185 Put Vertical Spreads @ $3.98 Credit per Contract.

Total Risk: This trade has a max risk of $1,806 (3 Contracts x $602) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $602 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue its bullish trend.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 103

Stop Loss: @ $7.96 (100% loss to value of premium)

View GOOGL Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday ‘s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View GOOGL Trade