Insights 
VT 
Alphabet’s stock has shown strong performance, rising 3.28% today. Since its earnings announcement on 23 July, its stock has increased by 32.48%. Google also reached a new peak, climbing 3.38%. From the April 2025 low of $140.53, Alphabet shares have surged over $100, representing a rise of approximately 77%.
A pivotal moment occurred on 3 September when Alphabet shares jumped 9.1% after a favourable court ruling on antitrust matters. Subsequently, shares added another 10.15% to their value. The price surpassed a rising trendline drawn from the July 2024 high through the February 2025 high, indicating a bullish trend.
For sellers to regain control, they would need to push the stock below this breached trendline, which is near $224 and rising. The 100-hour moving average lies at $225.80. This area creates a key zone; maintaining above it indicates a continued upward trend, while dropping below may bolster sellers. Despite being overbought, the stock’s momentum remains high. Unless it falls below the critical $224–$230 zone, the buyers hold the advantage.
Given the powerful rally in Alphabet since its July earnings, we see the trend as strongly bullish. The combination of fundamental news, like the favorable September 3rd court ruling, and technical momentum makes fighting this move risky. For those looking to ride the trend, buying call options with strikes above the current price allows for participation in further gains while defining risk.
This strength is not isolated, as we’ve seen with Tesla’s recent surge, suggesting a renewed appetite for large-cap tech leaders. In fact, data for the third quarter of 2025 so far shows that inflows into technology-focused ETFs have hit their highest level since the market rebound of late 2023. Call option volume on Alphabet has also outpaced put volume by nearly 2-to-1 in the last five trading sessions, confirming the strong bullish sentiment.
However, we must respect that the stock is technically overbought after climbing nearly 77% since the April 2025 lows. The key support zone identified between $224 and $230 is critical for us to watch. A break below this area would signal a shift in momentum and could trigger a rapid pullback.
Traders concerned about the overbought conditions could consider buying put options as a hedge or a speculative bet on a downturn. We remember the sharp correction in tech stocks in late 2021 after a similar period of over-extended gains, which serves as a good reminder. Implied volatility for October puts has remained modest, suggesting these protective positions can still be acquired without overpaying.
A more balanced approach could be using a bull call spread, which involves buying a call option and selling another one at a higher strike price. This strategy reduces the upfront cost compared to buying a call outright, offering a way to profit if the stock continues to grind higher. This is a sensible way to stay bullish while acknowledging that the explosive phase of the rally may be maturing.
