The August 18 setup on Alphabet Inc (GOOG) played out exactly as planned.
After a sharp run higher, GOOG flashed one of the strongest technical signals — a bearish divergence on the daily chart. Price pushed to new highs while the MACD histogram rolled over, and RSI stayed in overbought territory. Once again, the market reminded me: when a divergence shows up, it’s a signal worth respecting.
This trade didn’t require a major sell-off. The only job was for GOOG to stay capped below resistance while time decay did the heavy lifting. And that’s exactly how it unfolded — no drama into expiration, just a clean decay to full profit.
Trade Recap
Structure: Bear Call Spread
Expiration: Aug 22, 2025
Short Call: 217.5C (10 delta)
Long Call: 222.5C
Contracts: 16
Credit Received: $0.24
Broker Fees: –$13
Net P/L: +$371
👉 View on OptionStrat
👉 View in Trade Log
Post-mortem
This setup checked every box:
Clear divergence on momentum.
Overbought RSI confirming the stretch.
Strike selection strictly by the 10-delta rule — safely above recent highs.
Price respected the structure throughout the week. No squeeze risk, no surprises — just steady premium decay into a 100% win.
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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.