The August 25 setup on Alphabet Inc (GOOG) delivered exactly as designed.
The trade was built on stretched momentum — RSI holding above 70 and recent divergence confirming that upside acceleration was unlikely. The short strike at $222.5 was placed well above current levels, requiring an extreme move to threaten the position. That move never came.
Both options expired out of the money on August 29, allowing me to capture the full premium. Clean, disciplined execution with no need for a reversal — just time decay doing its work.
Trade Recap
Structure: Bear Call Spread
Expiration: Aug 29, 2025
Short Call: 222.5C (10 delta)
Long Call: 227.5C
Contracts: 16
Credit Received: $0.30
Broker Fees: –$23.13
Net P/L: +$457
👉 View on OptionStrat
👉 View in Trade Log
Post-mortem
This setup was about respecting probability.
Overbought RSI signaled exhaustion.
Divergence had already warned of slowing momentum.
Strike selection followed the 10-delta rule — positioned at all-time high levels.
The market never came close to testing resistance. The result: 100% premium capture, no drama, no adjustments needed.
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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.