Yesterday, August 29, I entered a position that’s not typical for my playbook — a put debit spread on Alphabet Inc (GOOG). Instead of selling premium, this time I’m testing a directional setup that profits from a downside move.
Trade details
Expiration: Oct 17, 2025
Long Put: $210 @ 6.99
Short Put: $200 @ 3.72
Contracts: 6
Net Debit: $1,962
Max Profit: $4,038
🔗 View on OptionStrat
📊 Logged in Trade Log
Why this setup
GOOG is sitting at all-time highs around $213, extended after a strong rally.
On the daily chart, momentum is stretched — RSI has been above 70, and MACD histogram is stalling.
The weekly chart shows a vertical run after multiple weeks of green, rarely sustainable without a pause.
On the monthly chart, price is pressing into fresh highs, leaving plenty of room for a pullback without breaking the long-term trend.
Given this context, I’m looking for a retrace toward the $200 level before Oct 17 (likely earlier). That zone lines up with prior consolidation and offers a logical target for mean reversion.
Note
This is an experimental trade for me. I usually focus on credit spreads, but in this case I wanted to research and explore how a debit spread behaves when paired with a high-probability technical setup.
If the pullback materializes, the structure pays out nicely with defined risk. If not — the debit is capped and I move on.
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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.
It looks risky to me. If you believe your technicals, then why not sell a call credit vertical spread? This would then benefit you if it stock stays the same or goes down.