Alphabet, Inc. (Google) weekly trade

By Gregory Clay of The Option Player

Option Trading Strategist & Financial Writer • Oct 14, 2016 at 12:25 PM EDT

Google stock is stuck in a tight trading range.

TheOptionPlayer.com is trading an Alphabet, Inc. (NasdaqGS: GOOGL) short-term (7-day) option strategy. Investors could simultaneously:

Sell the October 21st expiration GOOGL $820 call for $1.55 (Thursday’s closing quoted bid/ask mean)
Buy the $825 call at $.83
AND
Sell the November expiration GOOGL $785 put for $1.80 (Thursday’s closing quoted bid/ask mean)
Buy the $780 put at $1.18

The difference between funds received and paid out is a $1.34 per share credit which we keep if Alphabet, Inc. (Google) stock closes below $820 and above $785 on October 21st, but immediately exit the position if it the price moves outside of these boundaries. See Guidelines page for explanation on how trade is set up.

Why we recommend it:
As evidenced in the chart below, Alphabet, Inc. (Google) stock has traded range-bound since the end of July. Alphabet, Inc. is scheduled to announce earnings in a few weeks on October 27th. We are making a technical trade on the Alphabet, Inc. (NasdaqGS: GOOGL). Unless there is some unexpected major news that could potentially impact the tech giant’s performance, it is reasonable to expect the share price to remain in a tight range until after earning results are released. We are betting that GOOGL won’t be above our short call or below the short put at Next Friday’s option expiration.

52-Week High: $815.95
52-Week Low: $671.80
Average Volume (3 month): 1,441,087

Regular www.theoptionplayer.com subscribers can attest to the preponderance of successful trades published on this website. Click on this link to view trading log.

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