Option Focus | Alphabet's $1.74 Million Long-Dated OTM Call Purchase Signals Strong Bullish Conviction

Option Witch
Jul 21

Alphabet Inc. closed at USD 351.37, up 1.52%. The session's options activity was highlighted by a substantial bullish bet, with a single large trade in long-dated out-of-the-money call options accounting for the majority of notable flow.

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Options Indicators

GOOG’s implied volatility is 40.78%, and with an IV percentile of 92.43%, current option volatility sits in a clearly elevated range. Combined with an IV/HV ratio of 1.07, this suggests implied volatility is running slightly above recent realized volatility, indicating that options are priced on the expensive side rather than cheaply valued. The Call/Put volume ratio is 3.00.

Large Trades

A CALL purchase worth $1.74 million stood out as the key large trade, with 2,070 contracts bought at the 375.0 strike expiring on 2026-08-21. With GOOG referenced at $351.37, this call was out-of-the-money at the time of execution, indicating the buyer was positioning for upside beyond current levels over a longer-dated horizon. As a single-leg bullish options trade, it reflects a directional bet on continued appreciation in the stock, likely expressing conviction that GOOG can rise meaningfully enough to overcome both the strike distance and the premium paid.

Overall large-trade sentiment was clearly bullish, with total bullish flow at $1.74 million versus bearish flow of $0.00 million, leaving a net difference of $1.74 million to the bullish side. The directional read is decisively positive, as the entire large-trade sample was concentrated in an outright out-of-the-money call purchase, which typically signals upside speculation rather than income generation or defensive positioning.

Strategy Reference

For traders seeking to sell premium while managing assignment risk, a covered call writer could consider a higher out-of-the-money strike, such as 380.0 or above, for lower probability of assignment; alternatively, a bull call spread using the 375.0/380.0 strikes could define risk and reduce capital outlay compared to the outright long call position.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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