Option Trade 
Alphabet Inc (NASDAQ:GOOGL) Calls 
Thursday, October 22, 2015

**OPTION TRADE: Buy the GOOGL Jan 2016 750.000 call (GOOGL160115C00750000) at approximately $8.00. Place a pre-determined sell at $16.00.

Note: No protective stop losses added -- but if you wish to do so make it $3.20.

by Ian Harvey

October 22, 2015

Alphabet Inc (NASDAQ: GOOGL), a global technology company, will release third quarter earnings today, October 22, after market close. Wall Street analysts expect Google to post earnings of $5.88 per share for the current fiscal quarter. Twelve analysts have issued estimates for Google’s earnings. The lowest EPS estimate is $5.36 and the highest is $6.54, on revenue of $18.54 billion. Google posted earnings of $4.91 per share during the same quarter last year, which suggests a positive year over year growth rate of 19.8%.

GOOGL has been successful on the charts, adding 27% in 2015 to trade at $673.85, thanks to a few recent bounces from its 20-week moving average.

Shares of Google Inc. rose by 3.59% in the past week and 5.2% for the last 4 weeks. In the past week, the shares have outperformed the S&P 500 by 2.66% and the outperformance increases to 1.32% for the last 4 weeks.

Alphabet was created this summer to serve as the parent company to Google. The restructuring allows Google to focus on driving revenue from its core business while its offshoot businesses, such as exploratory projects focusing on everything from creating new medical devices to self-driving cars, can be run independently as subsidiaries of Alphabet.

The company's profit had topped estimates last quarter, ending a streak of six quarters of missing Wall Street's targets. The company's new chief financial officer, Ruth Porat, has said she will focus on keeping expenses under control.

The vast majority of analysts remain bullish on Alphabet due to Google’s strong long-term ability to monetize on mobile applications and cloud computing.

According to 26 analysts, in the last 3 months, 25 are bullish on the company and one is staying on the sidelines. The average 12-month price target for GOOGL is $783.46, marking a 13% potential upside from current levels.

The mean short term price target for Google Inc. has been established at $745.93 per share. The higher price target estimate is at $850.

Harvey’s Options Volatility Indicator

Therefore, based on the facts above, and Harvey’s Options Volatility Indicator, the following option trade is recommended…..

**OPTION TRADE: Buy the GOOGL Jan 2016 750.000 call (GOOGL160115C00750000) at approximately $8.00. Place a pre-determined sell at $16.00.

Note: No protective stop losses added -- but if you wish to do so make it $3.20.

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

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