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An options trade to bet the bottom is in for Alphabet after the strong results this week

An options trade to bet the bottom is in for Alphabet after the strong results this week

CNBC25-04-2025
"Search King" Alphabet , parent company of Google and YouTube, reported stronger-than-expected first-quarter growth, impressively beating on both top and bottom lines. Investors have had to endure significant and a much needed revaluation in Big Tech and I believe the washout is over. I want to own the upside in Google. The shares are still down roughly 20% from recent all-time highs in the face of continued uncertainty on tariffs. I want to use an options spread to define my risk in a bullish view for Google to move back higher towards $200. GOOGL YTD mountain Alphabet, YTD There was also a nice surprise in unrealized gains tucked into the Q1 earnings report. $11.2 billion in "Other Income," up 293% year-over-year, with $8 billion attributed to unrealized gains on "non-marketable equity securities." Bloomberg reported that this gain stemmed from Alphabet's investment in SpaceX, valued at approximately $350 billion in a December 2024 insider share transaction. Overall market price action in the month of April has been historic as the Cboe Volatility Index vaulted over 60 momentarily after uncertainty surround trade tariffs caught investors off guard. 2025 has been a roller coaster for Google too as we saw an all-time high in early February of $207.05 to an acute and a precipitous 32% drop (after trade tariffs were announced) printing a low of $140.53 in April. Jaw dropping volatility for a $2 trillion tech giant. I want to express a bullish opinion but, I also want to try to finance as much of this spread as I can since option premiums are still elevated with the VIX above 25. The Trade Sold the 6/20/2025 $150 GOOGL puts for $2.85 Bought the 6/20/2025 $170 GOOGL calls for $6.25 Sold the 6/20/2025 $190 GOOGL calls for $1.25 This spread will cost an investor $2.15 or $215 per one spread. GOOGL was roughly trading at $165 when this was established An investor has to be willing to own GOOGL at $150 in the event those puts get assigned. Therefore, the downside risk is unlimited if out to a long position when owning GOOGL. The upside maximum is capped out at $17.85 or $1,785 per one lot spread, $20 call spread minus the cost of the spread ($2.15). Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited! DISCLOSURES: Long GOOGL and this spread All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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2 Top Artificial Intelligence Stocks to Buy in August

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After Microsoft's $4 trillion milestone, who will be next to join the club?
After Microsoft's $4 trillion milestone, who will be next to join the club?

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After Microsoft's $4 trillion milestone, who will be next to join the club?

Microsoft became the second company to pass a $4 trillion market cap mark after a blowout earnings release on Wednesday afternoon. That release showed quarterly revenue up 18% year over year, and net income up 24%, which resulted in Microsoft shares increasing more than 4% on Thursday, bringing the company's overall value past $4 trillion. Exclusive: Google is indexing ChatGPT conversations, potentially exposing sensitive user data Emotionally intelligent people use the 2-week rule to motivate themselves and reach their biggest goals Middle management is dead On July 9, Nvidia was the first to top the $4 trillion mark. Over the past three years, Microsoft's stock has more than doubled. Yesterday's milestone comes roughly six years after Microsoft passed the $1 trillion mark. Other companies are also hot on its heels. Here are five others that could become the next $4 trillion companies. Apple Apple will report earnings on Thursday after the bell, which could have an impact on its overall value. As it stands, the company has a market cap of roughly $3.1 trillion—still a ways off from $4 trillion—but it is the third-largest public firm in the world, measured by market cap. It was the first company to cross the $1 trillion, $2 trillion, and $3 trillion market cap marks, and shares are currently trading at around $210. Notably, shares are down almost 15% year to date, but they have nearly doubled in value over the past five years. Amazon Amazon is the fourth-largest public company in the world by market cap, with an overall value of around $2.5 trillion. Like Apple, Amazon will report earnings after the bell on Thursday, which could increase or decrease its value. The company does have a lot of ground to make up on Microsoft and Nvidia to reach $4 trillion, which would require some significant movement in its share price, currently trading at more than $230. Alphabet Alphabet, Google's parent company, is the only other public company worth more than $2 trillion as of this writing, with a market cap of around $2.33 trillion. Like Amazon, that means there's quite a lot of work to do to get to $4 trillion. Alphabet's shares were trading for around $192 on Thursday afternoon, which was an intraday decline of 2%. Alphabet's most recent earnings report came out on July 23. Meta The only other company within spitting distance of $4 trillion is Meta, which, as of this writing, has a market cap of around $2 trillion. Following its latest earnings release on Wednesday, Meta shares increased 12%, with revenues up 22% year over year, and net income up 36%. This post originally appeared at to get the Fast Company newsletter: Sign in to access your portfolio

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