Alphabet, Inc. (GOOGL) put options offer a 1.77% yield to short-sellers over the next month. Stock has +32% upside potential based on FCF-based target. Buying in-the-money calls is another strategy. GOOGL closed at $309.29 on Dec. 12, slightly below a recent peak of $323.44. Potential year-end target of $408.27.

Playing GOOGL stock’s upside using leverage with OTM put options and ITM calls is discussed. Shorting OTM puts for immediate yield of 1.77%. Successful short play as GOOGL closed above the strike price. GOOGL up +6.8% over the last month. Using OTM puts income to fund ITM calls is an attractive strategy.

Based on strong FCF margins, GOOGL could be worth over $400 per share. Market cap is $3.746 trillion, implying potential upside of +26.8%. Analysts estimate average price target at $343.47. Selling OTM puts provides immediate yield. Buying ITM calls offers upside potential with downside protection.

Selling OTM puts in near-term expiry periods provides immediate yield. Jan. 16, 2026, expiry shows $295.00 strike put has premium of $5.23. Investor can make $523.00 with $29,500 collateral. Income from puts can fund ITM call purchases for leveraged exposure to GOOGL’s upside.

Buying ITM calls offers potential upside with downside protection. $295.00 call option expiring July 17, 2026, has a premium of $44.93. Investor can cover call cost with income received from put options. Conservative scenario shows potential 400% upside with a $370 price target. Shorting OTM puts and buying ITM calls can be an attractive strategy for playing Alphabet.

Read more at Barchart: How to Make a 1.77% 1-Month Yield in GOOGL Stock