Market Whales and Their Recent Bets on GOOGL Options
Nov 7, 2024
Alphabet Options Trading: A Deep Dive into Market Sentiment - Alphabet (NASDAQ:GOOGL)
Recently, the options market has shown a significant bearish sentiment towards Alphabet (NASDAQ: GOOGL), indicating that large investors, often referred to as 'whales', are making cautious moves in anticipation of possible declines.
Through our examination of the options trading history for Alphabet, we identified eight noteworthy trades. Notably, out of these trades, only 25% of the investors took a bullish outlook, while a significant 62% leaned towards bearish expectations.
Among the trades observed, there are two put options amounting to a total of $96,741 and six call options summed up to a total of $360,005. This discrepancy in contract types suggests a predominant belief among traders that Alphabet’s stock may face downward pressure in the coming months.
Projected Price Targets
Looking at the volume and open interest for these options contracts, it appears that trading activities within the last three months have centered on a target price range between $140.0 and $195.0 for Alphabet. This range encapsulates the expectations of major investors, revealing their strategic planning and price forecasts.
Analyzing Volume & Open Interest
As of today, the average open interest for Alphabet options is around 6,309.14, while total trading volume has reached 4,629.00. The accompanying charts illustrate the trends in both call and put option volumes and open interest for high-value trades in Alphabet within the strike price range from $140.0 to $195.0 over the past 30 days.
Alphabet 30-Day Option Volume & Interest Snapshot
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GOOGL | CALL | SWEEP | BEARISH | 12/06/24 | $0.58 | $0.55 | $0.55 | $172.50 | $118.9K | 9.0K | 2.0K |
| GOOGL | CALL | SWEEP | BULLISH | 12/13/24 | $1.89 | $1.88 | $1.89 | $170.00 | $86.0K | 1.3K | 721 |
| GOOGL | PUT | TRADE | BEARISH | 12/20/24 | $4.55 | $4.4 | $4.55 | $170.00 | $61.4K | 10.2K | 142 |
| GOOGL | CALL | SWEEP | BULLISH | 12/13/24 | $1.89 | $1.88 | $1.89 | $170.00 | $47.6K | 1.3K | 974 |
| GOOGL | CALL | SWEEP | BEARISH | 01/16/26 | $15.9 | $15.45 | $15.45 | $190.00 | $46.3K | 2.0K | 30 |
About Alphabet
Alphabet is best known as the parent company of the massive internet service platform, Google. Based in California, Alphabet makes nearly 90% of its revenue from Google’s services, mostly from advertising sales. In addition to online ad revenue, Alphabet also benefits from subscription services like YouTube TV and YouTube Music, as well as device sales like Pixel phones and Chromebooks. Google’s cloud computing services contribute roughly 10% of Alphabet’s revenue, while investments in innovative technologies such as self-driving cars (via Waymo), health (through Verily), and internet access (with Google Fiber) cover the remaining portions.
After thoroughly analyzing the options activities related to Alphabet, our focus shifts to the current performance of the company.
Current Position of Alphabet
- The current share price for GOOGL is $167.94, reflecting a decrease of 0.76% with a trading volume of 732,145.
- Relative Strength Index (RSI) indicators suggest that the stock is in a neutral position, neither overbought nor oversold.
- An earnings report is anticipated to be released in approximately 60 days.
Professional Analyst Ratings for Alphabet
One recent market expert has provided ratings for Alphabet, with a consensus target price of $185.0.
Unusual Options Activity Detected: Smart Money on the Move
Additionally, unusual options activity has been detected, indicating potential market movers before they occur. These alerts can help traders identify positions taken by institutional investors. It is noteworthy that an analyst from Loop Capital has confirmed a Hold rating for Alphabet, maintaining a price target of $185.
Engaging in options trading does involve unique risks, but it can offer the possibility of substantial profits. Many traders minimize these risks through continuous education, strategic adjustments, leveraging various indicators, and staying informed about market trends. To stay updated on the latest options trades for Alphabet, real-time alerts are available for traders looking to enhance their decision-making processes.
Alphabet, Trading, Market