From Nasdaq: 2024-05-14 13:44:00

Alphabet, Google’s parent company, reported strong quarterly earnings, surpassing estimates and experiencing significant growth in key segments like search, YouTube, and cloud computing. This growth has led to a YoY sales increase of 13%, prompting analysts to revise earnings estimates higher, giving Alphabet a Zacks Rank #1. A technical setup in the stock suggests a favorable options trade opportunity.

With the stock forming a bullish flag pattern after a gap up following earnings, there is potential for a breakout to new highs if it clears the $170 level. The implied volatility on Alphabet stock is relatively low, indicating that call options may be a good buying opportunity. By purchasing a $175 Call, traders can benefit from a potential breakout to around $177.50 within a week, offering a potential profit of +123%.

For investors seeking active trading opportunities and understanding the power of options, the trade setup in Alphabet stock presents a compelling opportunity. The momentum in the stock, combined with low implied volatility and a technical breakout pattern, could result in significant returns if structured properly. This trade allows investors to manage risk effectively while aiming for substantial upside potential.

Director of Research at Zacks, Sheraz Mian, has identified a top stock pick with the potential to double in value, targeting millennial and Gen Z audiences. With nearly $1 billion in revenue generated last quarter and a recent pullback in stock price, now may be a good time to consider this opportunity. This company has the potential for explosive upside, making it a favorable investment choice.



Read more at Nasdaq: Asymmetric Opportunities: Options Trade in Top Ranked Tech Stock