New Options Introduced for Alphabet Inc: Opportunities Arise for Investors

Investors in Alphabet Inc (Symbol: GOOG) now have access to new options that expire in July 2025. With 234 days until these options mature, sellers of puts or calls may find a chance to earn higher premiums compared to options expiring sooner. Our YieldBoost formula at Stock Options Channel has scoured the GOOG options chain and identified one noted put and one call contract that stand out.

Put Option at $165: A Strategic Opportunity

The put contract with a strike price of $165.00 currently has a bid of $8.50. For an investor willing to sell-to-open this put, it entails committing to buy the stock at $165.00 while receiving the premium upfront. This effectively lowers the purchase cost to $156.50 per share, excluding broker commissions. For someone considering buying GOOG at its current price of $169.61 per share, this approach could prove appealing.

This $165.00 strike price offers approximately a 3% discount on the current trading price, positioning it as out-of-the-money. Market analytics estimate a 64% chance that this put option will expire worthless. Stock Options Channel will continuously monitor the odds and update our website with relevant data, including a detailed chart. If the put expires worthless, the premium would yield a 5.15% return based on the cash commitment, translating to an annualized yield boost of 8.04%.

Charting Alphabet’s Trading History

Below, you can see a chart displaying the trailing twelve months of trading history for Alphabet Inc, with the $165.00 strike marked in green:

Call Option at $185: Potential for Returns

For the calls side, a call contract at the $185.00 strike price has a current bid of $8.75. If an investor buys GOOG shares at $169.61 and sells-to-open this call contract as a “covered call,” they are prepared to sell their stock at $185.00. Including the premium received, this strategy could result in a total return of 14.23% by the July 2025 expiration, not factoring in dividends or broker commissions. However, if GOOG shares appreciate significantly, substantial upside might be sacrificed. Hence, evaluating both the trading history and the business fundamentals of Alphabet is crucial.

Below is the chart that illustrates GOOG’s trailing twelve month trading history, showing the $185.00 strike highlighted in red:

Assessing Risks and Rewards of the Call Option

The $185.00 strike price equates to about a 9% premium over the current trading price, indicating it is out-of-the-money by that percentage. There’s a possibility that this covered call contract may indeed expire worthless, allowing the investor to retain both their shares and the premium earned. Current analytics suggest a 56% likelihood of this scenario. As with the put options, Stock Options Channel will also track these odds and provide updates, plus a chart of the trading history for this call contract. If the call contract expires worthless, the premium would reflect an added return of 5.16% or 8.05% annualized—what we refer to as YieldBoost.

The implied volatility for both the put and call contracts is around 27%. Additionally, our calculations show that the actual trailing twelve month volatility, considering the last 252 trading days and today’s price of $169.61, stands at 27%. For more insights into valuable put and call options, check out StockOptionsChannel.com.

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The views and opinions expressed herein are the author’s and do not necessarily reflect those of Nasdaq, Inc.