DailyPlay – Opening Trade (GOOGL) – July 29, 2025

GOOGL Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Alphabet Inc. is showing a solid gain following a recent strong earnings report. The stock continues to trend higher and is currently trading above all major moving averages, with the 20-day MA acting as short-term support. Despite ongoing regulatory challenges, the company continues to deliver strong operational performance and strategic execution across its core businesses. Its AI integration across search, cloud, and emerging technologies positions it for sustained double-digit growth, while its $70 billion buyback authorization and growing dividend provide immediate shareholder returns. Overall, Alphabet’s combination of scale, innovation, and capital returns underpins a constructive outlook for the stock in the second half of 2025.

Technical Analysis
Alphabet Inc. (GOOGL) recently broke out above key resistance near $180, confirming a bullish continuation following several months of consolidation. The stock is trading well above its 20-, 50-, and 200-day moving averages, with the rising 20-day MA providing short-term support around $183. Relative strength continues to improve, with GOOGL outperforming the S&P 500 and the RSI climbing to 71.8, signaling strong bullish momentum. With prior highs near $202 acting as the next potential resistance level, the technical setup supports a continued move higher.

Fundamental Analysis
Alphabet’s valuation remains attractive, trading slightly below the industry median despite its superior profitability profile. Robust expected EPS and revenue growth highlight the strength of its diversified business model, while net margins well above peers demonstrate strong operating leverage and disciplined capital allocation. Management’s ability to maintain elevated margins amid regulatory and macro headwinds reinforces Alphabet’s position as a durable, high-quality compounder with significant long-term upside potential.

• Forward PE Ratio: 20.15x vs. Industry Median 20.85x
  
• Expected EPS Growth: 12.69% vs. Industry Median 12.45%
  
• Expected Revenue Growth: 10.46% vs. Industry Median 11.80%
  
• Net Margins: 31.12% vs. Industry Median 6.28%
  

Options Trade
To capitalize on GOOGL’s bullish momentum with limited downside exposure, consider selling the Sep 5, 2025 $190/$185 put vertical for a $1.77 credit. This trade generates a maximum profit of $177 if GOOGL stays above $190 through expiration, with a defined max loss of $323 should it fall below $185. With 39 days to expiration and strong technical support above $180, the setup offers a favorable 0.55:1 risk/reward ratio while benefiting from both time decay and the bullish trend.

GOOGL – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 6 GOOGL Sep 05 $190/$185 Put Vertical Spreads @ $1.77 Credit per Contract.

Total Risk: This trade has a max risk of $1,938 (6 Contracts x $323) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $323 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 6/10

OptionsPlay Score: 92

Stop Loss: @ $3.54 (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 Monday’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