DailyPlay – Opening Trade (GOOGL) & Closing Trade (MU) – June 24, 2025

Closing Trade

• MU – 50% gain: Sell to Close 5 Contracts (or 100% of your Contracts) July 11 $117/$130 Call Vertical Spreads @ $5.95 Credit. DailyPlay Portfolio:  By Closing 5 Contracts, we will be collecting $2,975. Our cost basis on the trade was $1,995 Debit. Our gain, therefore, is $980.

GOOGL Bullish Opening Trade Signal

Investment Rationale

Investment Thesis:
Alphabet Inc. (GOOGL) presents an attractive bullish setup driven by a combination of technical resilience, compelling valuation, and strong business fundamentals. As one of the core pillars of digital advertising, AI infrastructure, and cloud computing, Alphabet remains well-positioned to benefit from ongoing secular trends in digital transformation and enterprise AI adoption. With earnings scheduled for July 22, we seek to capitalize on short-term price stability and potential upside while avoiding the volatility premium typically associated with earnings events. Our focus is on capturing this opportunity through a defined-risk put spread that expires before the report.

Technical Analysis:
GOOGL is undergoing a constructive pullback within a well-established bullish trend, offering a favorable setup for trend-following traders. The stock recently broke out of a multi-month consolidation and has now pulled back to retest key support near $165, which aligns with prior resistance and marks a critical retracement zone. Price action is beginning to stabilize, and GOOGL continues to hold above its rising 50-day moving average, reinforcing the strength of the longer-term uptrend. This pullback presents a compelling risk/reward opportunity, with a successful defense of the $165 level likely to set the stage for a move back toward the $175–$185 resistance range and our $185 upside target.

Fundamental Analysis:
GOOGL continues to trade at a relative discount despite its strong profitability and growth outlook, reinforcing its status as a high-quality compounder. Margins remain well above peers, driven by the efficiency of its advertising engine and growing contribution from higher-margin businesses like Google Cloud and YouTube.

• Forward PE Ratio: 17.39x vs. Industry Median 19.15x
  
• Expected EPS Growth: 12.80% vs. Industry Median 12.58%
  
• Expected Revenue Growth: 10.46% vs. Industry Median 11.73%
  
• Net Margins: 30.86% vs. Industry Median 6.28%
  

Options Trade:
To express this bullish thesis while avoiding pre-earnings volatility expansion, we suggest selling the GOOGL Jul 18, 2025 $165/$157.50 Put Vertical for a $2.43 credit. This defined-risk trade collects premium by selling the $165 put and buying the $157.50 put.  Max profit is earned if GOOGL stays at or above $165. Max loss occurs below $157.50. With a solid 2 to 1 risk-reward ratio, this setup benefits from time decay and supports our view that GOOGL holds firm or trends higher in the near term.

GOOGL – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 4 GOOGL July 18 $165/$157.50 Put Verticals @ $2.43 Credit per Contract.

Total Risk: This trade has a max risk of $2,028 (4 Contracts x $507) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $507 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: Mildly Bearish/Neutral

Relative Strength: 2/10

OptionsPlay Score: 86

Stop Loss: @ $4.86 Debit (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