🎯 $Alphabet Inc.(GOOG) Options Strategy: Bull Call Spread (Debit Spread)

$Alphabet(GOOG)$

- Underlying: GOOG

- View: Bullish, targeting a breakout above $400 with potential consolidation.

- Strategy Type: Debit Spread / Directional Bullish

- Option Contract Portfolio:

- Buy 1 GOOG Jun 20, 2026 $400 Call

- Sell 1 GOOG Jun 20, 2026 $415 Call

- Max Gain & Loss:

- Max Gain: $1,000 per spread (if GOOG >= $415 at expiry)

- Max Loss: $400 per spread (if GOOG <= $400 at expiry)

- Initial Cost/Credit: Debit of ~$4.00 per share ($400 per contract spread)

- Greek Exposure (Simulated):

- Delta: +0.30 (Moderate positive directional exposure)

- Theta: -$0.50 per day (Moderate time decay cost, mitigated by short call)

- Vega: +$0.10 (Slight positive exposure to IV increase)

- Gamma: +0.015 (Moderate sensitivity to price moves near $400)

- Rho: +0.02 (Minor positive sensitivity to interest rates)

- Rationale: This strategy capitalizes on the bullish momentum and target of $413-$425, while managing cost and risk. The long $400 call provides upside capture, and the short $415 call (near analyst target) finances part of the premium, reducing net debit and capping maximum profit. It offers a favorable risk/reward ratio (~2.5:1) for a move to resistance. The positive Delta aligns with the view, while the controlled negative Theta and low Vega make it suitable for a trending move rather than a pure volatility play.

- Time Frame: Short-Term (Approx. 5 weeks to June expiry)

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