Google Parent Alphabet Attracts Millions of Dollars in Option Trades: Options Chatter

As the market opened Tuesday, three block trades were posted with a combined premium of $10.2 million covering put options that give their holders the right to sell a total of 839,000 Alphabet shares at $310 each over the next 38 days. Those trades are almost 15X the open interest of 565 contracts. Each contract covers 100 shares.

The block trades could signal the seller/sellers’ optimism that Alphabet will continue to trade above that strike price, allowing the put options to expire worthless by Feb. 6.

The Alphabet transaction has an almost 65% profit probability for the seller, with the breakeven point seen at $298.40, lower than the current share price of $313.68.

The sellers of the put options aren't the only ones optimistic about the stock’s outlook. More than 80% of the analysts who cover the stock have a buy rating on Alphabet and no one is recommending that clients sell the stock. The remaining 17% have a hold rating.

JPMorgan analysts including Doug Anmuth cited Alphabet’s leadership in artificial intelligence, its full stack strength, margin stability and growth in data and distribution, as they expressed confidence that the stock will continue to outperform.

“Revenue acceleration & durably re-engineering cost base should provide offset to investments,” the analysts said.

Google’s Gemini 3.0 ranks no. 1 on AI leaderboard, with more than 650 million monthly active users, and it’s continuing to take market share, while its tensor processing units (TPUs) – its custom-built AI processors, are already entering their 7th generation, the analysts said. The company’s cloud business is also boosted by tailwinds from AI-driven demand, they said.