4 Trade Ideas For Alphabet
Dragonfly Capital | Jul 08, 2019 07:51AM ET
Alphabet (NASDAQ:GOOGL) made a marginally higher high in April after run up from the December low. Since then it retraced 78.6% of that move and found support at the beginning of June. The reversal from there saw a stall at the 200 day SMA and pullback to a higher low. Now it is moving higher and through the 50 and 200 day SMA’s, and making a higher high.
The RSI is rising into the bullish zone with the MACD moving higher and about to turn positive. The Bollinger Bands® are shifting higher as well. There is resistance at 1135 near the 50% level of the last leg higher, then at 1157 and 1170 before 1187 and 1200. Above that there is a gap to fill to 1280 with possible stall points at 1220, 1235 and 1272 along the way. Support lower comes at 1122 and 1105 then 1075 and 1040. Short interest is low under 1%. The company is expected to report earnings next on July 25th.
The July options chain sees the biggest open interest at the 1100 put strike then from 1050 to 1080 below. The call side is much bigger and found at 1120 and 1125 then 1100. The July 26 Expiry, the first covering earnings, sees open interest scattered and small. The August options are also scattered with the biggest open interest at 1100 and 1080 then 1000 on the put side and 1220 and 1250 on the call side.
h3 Alphabet, Ticker: $GOOGL/h3- Trade Idea 1: Buy the stock on a move over 1135 with a stop at 1115.
- Trade Idea 2: Buy the stock on a move over 1135 and add a July 26 Expiry 1130/1070 Put Spread ($19) while selling the September 1200 Calls ($19).
- Trade Idea 3: Buy the July 26 Expiry 1180/1200 Call Spread ($5) and sell the July 26 Expiry 1050 Put ($5).
- Trade Idea 4: Buy the July/August 1150 Call Calendar ($20) and sell the July 26 Expiry 1050 Puts ($5).
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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