Alphabet Inc (GOOG) has pushed into uncharted territory, printing fresh all-time highs for the third straight week. This morning’s opening surge marked the peak of the move, with RSI deeply overbought and momentum stretched far beyond sustainable levels.
📉 Vertical rally at extremes. High risk of pause or pullback.
Setup Selection
The daily chart shows GOOG accelerating far above its moving averages, while weekly and monthly candles now stand extended and parabolic. RSI is flashing extreme readings, confirming exhaustion.
My entry is anchored to the system rule: sell at the 10-delta level. At $265, the short strike sits well above today’s high, requiring yet another burst of unusual strength to challenge the position. Premiums remain rich on the back of elevated implied volatility, keeping the risk/reward profile attractive.
Why Bear Call Spread?
→ Defined risk, capped exposure
→ Entry strictly at 10-delta strike
→ Trade profits from consolidation or even a shallow retrace
This setup doesn’t demand a reversal — only that GOOG fails to stage another melt-up through untested highs.
Trade Structure
Expiration: September 19, 2025
Short Call: 265 (10-delta)
Long Call: 270
Contracts: 18
Credit Received: $0.23 per contract (net after spread)
Target Profit (net before fees): $414
👉 View on OptionStrat
👉 View in Trade Log
Entry and Exit Plan
Position opened Monday, September 15, at the 10-delta strike.
→ If GOOG stalls beneath $265 and most of the premium decays ahead of Friday, I’ll look to exit early rather than hold into expiration.
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Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.