DailyPlay – Opening Trade (GOOGL) – December 6, 2024

GOOGL Bullish Opening Trade Signal

Investment Rationale

Alphabet Inc. (GOOGL) recently broke out above its $170 resistance level and pulled back to this support level, providing a strong risk/reward opportunity for adding bullish exposure.

From a fundamentals perspective, GOOGL is fair-valued, trading at a 5% discount relative to its peers. Despite this, it is expected to grow faster than its competitors and is far more profitable, suggesting substantial upside potential. GOOGL has a forward PE ratio of 19.43x compared to the industry average of 20.54x. Its expected EPS growth is 19.17%, outpacing the industry average of 11.69%. Additionally, its expected revenue growth is 12.05%, compared to the industry average of 8.18%, and its net margins are significantly higher at 27.74% versus the industry average of 13.82%.

GOOGL – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 1 GOOGL Mar 21, 2025 $160 Call @ $19.05 Debit per Contract.

Total Risk: This trade has a max risk of $1,905 (1 Contract x $1,905) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $1,905 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Neutral/Bullish

Relative Strength: 3/10

OptionsPlay Score: 82

Stop Loss: @ $9.53 (50% loss 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