The Bottom Line:
- Analysis of Alphabet Google stock trends
- Identifying key support and resistance levels
- Selling credit around 8 EMA reversal
- Proposed trade strategy for March 5 expiration
- Potential return on capital and probability of success
Alphabet Google Stock Trends Overview
Alphabet Google Stock Analysis and Trade Proposal
The analysis of Alphabet Google stock reveals a recent reversal with the stock finding support around the $130 level and beginning to climb back up. This uptrend is supported by breaking out of a previous downtrend line and the 8 and 21 EMAs crossing over bullish, indicating a potential upward movement.
Trade Proposal for Alphabet Google Stock
A trade proposal is put forward to take advantage of Alphabet’s potential upside movement. The suggestion is to sell the $134 strike put options and buy the $131 strike as protection, resulting in a $3 risk for approximately 30 cents of credit per contract. By multiplying this trade by two or three contracts, traders can manage their risk and potentially earn a return on capital of around 11.1%.
Trade Timeline and Probability
The proposed trade has a timeframe to April 5th and a probability of success at around 83%. This trade aims to capture Alphabet’s continuation of upward momentum, providing a structured approach to benefit from the stock’s potential movement.
Key Support and Resistance Levels Analysis
Support and Resistance Levels Analysis
The recent movements in Alphabet Google stock show a reversal pattern, with the stock finding a base around the $130 level and starting an upward climb towards key support and resistance levels. Breakouts from previous downtrend lines and bullish crossovers of the 8 and 21 EMAs are indicating a positive momentum.
Trade Proposal Details
To benefit from this potential uptrend in Alphabet stock, a trade proposal suggests selling the $134 strike put options while buying the $131 strike for protection. This results in a manageable $3 risk per contract with a credit of around 30 cents, offering traders a structured approach to position themselves for gains.
Trade Timeline and Probability of Success
The trade is set to play out until April 5th, aiming to capture Alphabet’s continued upward movement. With a probability of success estimated at approximately 83%, this trade presents an opportunity for traders to capitalize on the stock’s positive trajectory.
Selling Credit Around 8 EMA Reversal
Credit Selling Opportunity Around 8 EMA Reversal
The trade strategy proposed focuses on selling credit around the $134-$135 level based on the reversal seen around the 8 EMA. By taking advantage of this reversal and the upward momentum, traders can aim for profitable results by strategically entering into the options trade.
Trade Proposal Details and Risk Management
The specific trade recommendation involves selling the $134 strike put options while simultaneously buying the $131 strike for protection. With a calculated risk of $3 per contract and a credit of around 30 cents, traders can manage their risk exposure while positioning themselves to benefit from the potential upside movement in Alphabet stock.
Timeline and Success Probability
This trade opportunity is structured to play out until April 5th, aligning with the anticipated continuation of Alphabet’s upward trajectory. With an estimated probability of success at 83%, traders have the opportunity to capitalize on the stock’s positive momentum within a defined timeline.
Proposed Trade Strategy for March 5 Expiration
Trade Strategy for March 5 Expiration
The proposed trade involves selling the $134 strike put options and buying the $131 strike for protection, resulting in a $3 risk per contract with approximately 30 cents of credit. Traders can consider multiplying the trade by two or three contracts to manage risk exposure effectively.
Risk Management and Return Calculation
By assessing the trade setup, traders can evaluate the potential return on capital, considering a calculated risk of $9 for about $90 in credit with three contracts. The trade offers a structured approach to capitalize on Alphabet’s expected upward movement while managing risk adequately.
Trade Timeline and Success Potential
With the trade set to play out until April 5th, traders can anticipate capturing Alphabet’s continuation of the upward trend. The trade proposal presents an 83% probability of success, aligning with the stock’s positive momentum and providing an opportunity for profitable outcomes.
Return on Capital and Success Probability Evaluation
Return on Capital and Likelihood of Success Assessment
The trade proposal suggests selling the $134 strike put options and buying the $131 strike for protection. This results in a $3 risk per contract with about 30 cents of credit, offering a potential return on capital of approximately 11.1%.
Proposed Trade Timeline and Probability Analysis
The trade is planned to unfold until April 5th, aiming to benefit from Alphabet’s upward momentum. With an estimated probability of success at around 83%, traders have the opportunity to capitalize on the positive trajectory of the stock.
