Insights 
VT 
A US judge has delivered a ‘sealed’ verdict in the case concerning Google’s online search monopoly. This decision has caused Google’s shares to rise by over 4% in after-hours trading, reaching a record high.
The ruling mandates Google to share particular information with its competitors. However, the company is not required to divest its Chrome browser or the Android operating system.
Volatility Crush
The immediate uncertainty surrounding Google’s future is now gone, which means the high implied volatility priced into its options is about to disappear. For traders, this “volatility crush” is the most important short-term event, making it a difficult environment for those simply holding long calls or puts. We expect the value of these options to decrease significantly from the drop in volatility alone.
Given this, selling option premium is now the most logical strategy for the coming weeks. With the catastrophic risk of a company breakup removed, the extreme tail-risk premiums that were priced in are no longer justified. This is an opportunity to sell covered calls against long stock positions or sell cash-secured puts at levels where we are comfortable owning the shares.
Looking at the numbers, we saw shares surge past $220 to a new record, while 30-day implied volatility, which was sitting near 45% in late August 2025, is now projected to fall back toward its yearly average below 30%. This rapid decline in volatility presents a clear window to collect premium. The market has effectively signaled that the worst is over, and we should position accordingly.
Historical Precedent
We can look at the historical precedent of Microsoft’s antitrust case from the early 2000s for guidance. After the final judgment removed the threat of a breakup, the cloud of uncertainty lifted and allowed the company’s strong fundamentals to drive the stock forward over the long term. We anticipate a similar relief rally and a period of stabilization for Google, reinforcing the case for strategies that profit from time decay and lower volatility.
For a more risk-defined approach, traders should consider setting up credit spreads, such as bull put spreads. This strategy benefits from the stock staying stable or drifting higher while also profiting from the collapse in volatility. It allows us to participate in this event with a clearly defined and limited risk profile.
