DailyPlay – Opening Trade (GOOGL) & Closing Trade (MU) – June 05, 2025

Closing Trade

• MU – 85% gain: Buy to Close 3 Contracts (or 100% of your Contracts) June 20 $96/$86 Put Vertical Spreads @ $1.06 Debit. DailyPlay Portfolio:  By Closing 3 Contracts, we will be paying $318. We initially opened this trade on May 30 @ $7.22 Credit. Our gain, therefore, is $1,848.

GOOGL Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Alphabet Inc. (GOOGL) presents an attractive bullish opportunity as it benefits from resilient advertising demand, continued AI integration across its product suite, and strong operating leverage from its cloud and search businesses. Despite broader macro headwinds and competitive pressure in the tech sector, GOOGL remains well-positioned as a secular compounder. The stock offers a favorable valuation relative to peers while maintaining superior profitability, making it a compelling candidate for a defined-risk bullish strategy heading into Q3.

Technical Analysis
GOOGL has surpassed its 50-day moving average of $161.91, now at $168.05, and is consolidating below the 200-day moving average of $172.90, a critical resistance. It bounced from about $158.91 in early May, higher than April’s $140.53 low, showing bullish trends. RSI at 54.03 indicates potential for appreciation. Breaking above $172.90 with volume could lead to a new upward leg.

Fundamental Analysis
Alphabet’s financial metrics continue to reflect operational strength despite slightly lagging growth expectations:

• Forward PE Ratio: 17.55x vs. Industry Median 17.8x
  
• Expected EPS Growth: 12.81% vs. Industry Median 13.42%
  
• Expected Revenue Growth: 10.46% vs. Industry Median 11.73%
  
• Net Margins: 30.86% vs. Industry Median 6.28%

While revenue and EPS growth forecasts are modestly below median levels, GOOGL’s dominant margin profile underscores its cash flow strength and pricing power. The company’s AI strategy, efficiency initiatives, and leadership in digital advertising continue to support long-term margin expansion.

Options Trade
A defined-risk bullish position can be established using the GOOGL Jul 18, 2025 165/160 bull put vertical. The trade generates a profit if GOOGL closes above $165 at expiration, offering a 50.2% return on risk. It capitalizes on time decay and stable to moderately bullish price action, making it well-suited for a consolidation phase within an overall constructive technical setup.

GOOGL – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 6 GOOGL July 18 $165/$160 Put Vertical Spreads @ $1.67 Credit per Contract.

Total Risk: This trade has a max risk of $1,998 (6 Contracts x $333) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $333 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/Neutral

Relative Strength: 5/10

OptionsPlay Score: 91

Stop Loss: @ $3.34 (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 Wednesday’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