The September 5 setup on Alphabet Inc (GOOG) played out exactly as expected.
GOOG pushed to fresh all-time highs after the antitrust ruling, leaving momentum stretched and RSI firmly in overbought territory. Price action stayed elevated all week, but crucially never challenged the 10-delta short strike at $247.5. The rally stalled just enough to let time decay do its work.
By Friday’s close, both options expired out of the money, locking in the full premium. A disciplined strike selection again proved its worth — allowing a high-probability trade to deliver clean results without needing a reversal signal.
Trade Recap
Structure: Bear Call Spread
Expiration: Sep 12, 2025
Short Call: 247.5C (10 delta)
Long Call: 252.5C
Contracts: 17
Credit Received: $0.22
Broker Fees: –$41
Net P/L: +$333
👉 View on OptionStrat
👉 View in Trade Log
Post-mortem
This setup leaned on probability, not prediction.
→ Overbought RSI signaled exhaustion risk.
→ Strike selection respected the 10-delta rule.
→ All-time highs were not breached, leaving the spread untouched.
The market’s strength remains, but as long as premiums stay elevated, the same playbook applies. Momentum can stay hot, yet defined-risk credit spreads at stretched levels keep delivering. Next week may offer a similar setup if conditions persist.
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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.