Alphabet Inc (GOOG) just surged after a favorable antitrust ruling, where the judge cited AI competition as part of his reasoning. The gap two days ago carried shares far above their trend channel, leaving RSI stretched and momentum at unsustainable levels.
📉 Extended rally. Likely pause ahead.
Setup Selection
Price now sits only 5% below $247.5 — the level marked by my chosen short strike. To challenge this position, GOOG would need to extend further after an already vertical run. While there is no clear reversal signal yet, the system rules apply: enter at the 10-delta level, where continuation would require an unusual burst of strength.
Premiums remain firm thanks to elevated implied volatility, creating a defined-risk trade with a favorable reward profile.
Why Bear Call Spread?
→ Defined risk, capped exposure
→ Entry strictly at 10-delta strike
→ Trade benefits from consolidation, not just reversal
This position doesn’t require a collapse — it only requires price to avoid a sudden melt-up through untested highs.
Trade Structure
Expiration: September 12, 2025
Short Call: 247.5 (10-delta)
Long Call: 252.5
Contracts: 17
Credit Received: $0.22 per contract
Target Profit (net before fees): $374
👉 View on OptionStrat
👉 View in Trade Log
Entry and Exit Plan
Position opened Friday, September 5, at the 10-delta strike.
→ If GOOG consolidates below $247.5 and most of the premium is captured ahead of expiration, I’ll look to close early rather than hold into Friday.
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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.