Alphabet Options Trading: A Deep Dive into Market Sentiment - Alphabet (NASDAQ:GOOGL)
Nov 29, 2024
Market Whales and Their Recent Bets on GOOGL Options
Recently, significant investors, often referred to as "whales," have taken a bullish stance on Alphabet Inc. (GOOGL). This shift in investor sentiment is not something that market participants should overlook. Insights from recent public options records indicate a notable movement in the options market for GOOGL, often indicating that major changes may be on the horizon.
Our analysis today revealed that Benzinga's options scanner tracked an unusual uptick in activity concerning GOOGL options. Specifically, there were nine noteworthy transactions involving GOOGL that stood out due to their volume, signaling potential strategic plays by these heavyweights.
The sentiment among these investors reveals a slight bias, with approximately 55% of the activity indicating a bullish outlook and 33% leaning bearish. Out of the total options activity, two put options were identified with a combined total value of $124,452, while seven call options exhibited a larger cumulative value of $474,678.
Price Projections
Based on the volume and open interest of these options contracts, it appears that market whales have been focusing on a price target range for Alphabet, with expectations spanning from $150.00 to $360.00 over the past three months. This analysis helps provide context regarding where major players foresee the stock moving.
Understanding Volume and Open Interest
Examining both volume and open interest offers a valuable approach for assessing the liquidity and ongoing interest in GOOGL's options at certain strike prices. By doing so, traders can make more informed decisions.
The following section delves into the recent developments in volume and open interest surrounding GOOGL options, particularly focusing on a strike price range from $150.00 to $360.00 over the last month.
Recent Options Activity Insights
Gathering data on both put and call options has yielded several significant trades from the last 30 days:
Highlighted Options Transactions:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GOOGL | CALL | TRADE | BULLISH | 02/21/25 | $23.0 | $23.0 | $23.0 | $160.00 | $172.5K | 1.6K | 75 |
| GOOGL | CALL | SWEEP | BULLISH | 06/18/26 | $27.35 | $27.3 | $27.35 | $185.00 | $103.9K | 418 | 53 |
| GOOGL | CALL | SWEEP | BULLISH | 01/17/25 | $1.3 | $1.29 | $1.29 | $200.00 | $71.5K | 89.3K | 1.7K |
| GOOGL | PUT | SWEEP | BEARISH | 02/21/25 | $9.7 | $9.65 | $9.65 | $180.00 | $70.4K | 386 | 103 |
| GOOGL | PUT | TRADE | BEARISH | 04/17/25 | $9.0 | $8.95 | $9.0 | $175.00 | $54.0K | 260 | 60 |
About Alphabet
Alphabet Inc., the parent company of Google, generates nearly 90% of its revenue from its various Google services, primarily driven by advertising. This includes revenue from YouTube, Google Play Store, and device sales such as Chromebooks and Pixel phones. The company also sees a portion of its revenue from Google's cloud computing operations, which represents about 10% of total sales. Other innovative ventures, such as Waymo (self-driving cars) and Verily (health tech), contribute to Alphabet's diversity.
Now, with the backdrop of these recent options activities, it's pertinent to assess Alphabet’s current market performance.
Alphabet's Current Market Position
- GOOGL is currently trading at $178.2, up by 0.96%, with a trading volume of 3,482,171.
- Relative Strength Index (RSI) indicates that the stock may be overbought.
- Upcoming earnings report is scheduled for release in 82 days.
Professional Analyst Insights on Alphabet
Five analysts have provided their assessments of GOOGL in the past month, arriving at an average price target of $203.00.
Recent Analyst Ratings:
- Needham has downgraded its rating to Buy, targeting $210.
- Truist Securities maintains a Buy recommendation with a $220 price target.
- RBC Capital continues its Outperform rating with a target of $210.
- Bernstein holds a Market Perform rating, aiming for $185.
- Cantor Fitzgerald has lowered its rating to Neutral, now targeting $190.
Options trading inherently carries higher risks and potentially higher rewards. Savvy traders mitigate these risks through continued education, adjusting strategies, and monitoring market signals closely. For those looking for insight into recent trades in GOOGL options, staying informed is key.
Alphabet, GOOGL, Options