“Search King” Alphabet , parent company of Google and YouTube, reported stronger-than-expected first-quarter growth, impressively beating on both top and bottom lines. Investors have had to endure significant and a much needed revaluation in Big Tech and I believe the washout is over. I want to own the upside in Google. The shares are still down roughly 20% from recent all-time highs in the face of continued uncertainty on tariffs. I want to use an options spread to define my risk in a bullish view for Google to move back higher towards $200. GOOGL YTD mountain Alphabet, YTD There was also a nice surprise in unrealized gains tucked into the Q1 earnings report. $11.2 billion in “Other Income,” up 293% year-over-year, with $8 billion attributed to unrealized gains on “non-marketable equity securities.” Bloomberg reported that this gain stemmed from Alphabet’s investment in SpaceX, valued at approximately $350 billion in a December 2024 insider share transaction. Overall market price action in the month of April has been historic as the Cboe Volatility Index vaulted over 60 momentarily after uncertainty surrounding trade tariffs caught investors off guard. 2025 has been a roller coaster for Google too as we saw an all-time high in early February of $207.05 to an acute and a precipitous 32% drop (after trade tariffs were announced) printing a low of $140.53 in April. Jaw dropping volatility for a $2 trillion tech giant. I want to express a bullish opinion but, I also want to try to finance as much of this spread as I can since option premiums are still elevated with the VIX above 25. The Trade Sold the 6/20/2025 $150 GOOGL puts for $2.85 Bought the 6/20/2025 $170 GOOGL calls for $6.25 Sold the 6/20/2025 $190 GOOGL calls for $1.25 This spread will cost an investor $2.15 or $215 per one spread. GOOGL was roughly trading at $165 when this was established An investor has to be willing to own GOOGL at $150 in the event those puts get assigned. Therefore, the downside risk is unlimited if put to a long position when owning GOOGL. The upside maximum is capped out at $17.85 or $1,785 per one lot spread, $20 call spread minus the cost of the spread ($2.15). Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited! DISCLOSURES: Long GOOGL and this spread All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
