Option Trade
Alphabet Inc (NASDAQ:GOOGL) Calls 
Monday, 01 February, 2016

**OPTION TRADE: Buy the GOOGL Mar 2016 840.000 call (GOOGL160318C00840000) at approximately $7.10. Place a pre-determined sell at $14.00.

Note: No protective stop losses added -- but if you wish to do so make it $2.85.

by Ian Harvey

February 01, 2016

Alphabet Inc (NASDAQ: GOOGL), a collection of Companies, reports its 2015 full-year and fourth-quarter results after the market closes today, February 1st. Analysts forecast the company to report earnings of $8.10 per share, on revenue of $20.72 billion.

Google has posted back-to-back strong quarterly reports, each of which drove the stock sharply higher to new record highs. Shares are down on the year in sympathy to the overall market, but if the company is able to once again post strong numbers we could easily see another record high for the stock on the news.

While the stock trended lower with the overall market during the first half of January, shares appear to have found a bottom, and appear to be poised to erase some recent gains on an upbeat report.

One reason the stock has held up better than others over the last month is the company's lack of exposure in China.

Also, Google was boosted in sympathy to a strong Facebook (FB) quarterly report, and if the company posts a positive earnings surprise then it is possible there will be a new all-time high.

Alphabet’s stock is up 46 percent during the past 12 months and down about 4 percent since the beginning of this year.

Shares of Alphabet traded up 1.74% on Friday, reaching $761.35. The company’s stock had a trading volume of 3,790,395 shares. The company’s 50-day moving average is $750.90 and its 200 day moving average is $706.29. Alphabet has a 12-month low of $521.72 and a 12-month high of $798.69. The company has a market capitalization of $523.60 billion and a price-to-earnings ratio of 32.09.

There have been many hedge funds that have recently bought shares of the company. Taylor Wealth Management Partners boosted its stake in Alphabet by 5.0% in the fourth quarter. Taylor Wealth Management Partners now owns 84 shares of the company’s stock worth $65,000 after buying an additional 4 shares during the last quarter. Lenox Wealth Advisors boosted its stake in Alphabet by 6.8% in the fourth quarter. Lenox Wealth Advisors now owns 312 shares of the company’s stock valued at $243,000 after buying an additional 20 shares in the last quarter. Baystate Wealth Management boosted its stake in Alphabet by 3.1% in the fourth quarter. Baystate Wealth Management now owns 335 shares of the company’s stock valued at $261,000 after buying an additional 10 shares in the last quarter. First Hawaiian Bank acquired a new stake in Alphabet during the fourth quarter valued at approximately $261,000. Finally, American Research & Management Co. boosted its stake in Alphabet by 9.0% in the fourth quarter. American Research & Management Co. now owns 364 shares of the company’s stock valued at $283,000 after buying an additional 30 shares in the last quarter.

Alphabet Inc‘s stock had its “overweight” rating reissued by analysts at Morgan Stanley in a research report issued to clients and investors last Tuesday. They presently have an $820.00 target price on the stock. Morgan Stanley’s target price would indicate a potential upside of 11.77% from the stock’s current price.

Also, Alphabet Inc had its price target raised by equities research analysts at Wedbush from $740.00 to $800.00 in a note issued to investors last Friday. The brokerage presently has a “neutral” rating on the stock. Wedbush’s price target would suggest a potential upside of 5.08% from the stock’s previous close.

A number of other brokerages also recently issued reports on GOOGL. RBC Capital reissued an “outperform” rating and issued a $880.00 price target on shares of Alphabet in a report on Tuesday, December 1st. Axiom Securities reissued a “buy” rating on shares of Alphabet in a report on Sunday, January 3rd. Sanford C. Bernstein reissued a “buy” rating on shares of Alphabet in a report on Wednesday, December 9th.

Overall, shares of Alphabet Inc have been given a price target of $860.69. In comparing the target to current levels, shares closed the last trading session at $748.30.


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 Mar 2016 840.000 call (GOOGL160318C00840000) at approximately $7.10. Place a pre-determined sell at $14.00.

Note: No protective stop losses added -- but if you wish to do so make it $2.85.

”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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