The FAANG Stock For Bulls this Month

Alphabet tends to outperform in December

Digital Content Manager
Dec 2, 2019 at 1:50 PM
facebook X logo linkedin


The shares of Google parent Alphabet Inc (NASDAQ:GOOGL) just hit a record high of $1,333.92 earlier last month, and have been consolidating just south of here, with pressure at $1,317 keeping GOOGL from reclaiming these mid-month highs. And while the security is off 1.2% to trade at $1,288.19, it's running right into recent support at its 40-day moving average with a 23.3% gain for the year. 

GOOGL Dec 2

Historically, the holiday season has meant big returns for the search engine giant, and in fact, it is the only FAANG stock to show up on Schaeffer's Senior Quantitative Analyst Rocky White's list of best stocks for December. Per White's data, GOOGL has seen a monthly gain during eight of the past 10 years, and averaged a 2.06% pop. A similar move would put the equity at $1,314.53. 

Analysts are betting on a bounce for the tech stock, with 27 of the 30 in coverage calling it a "buy" or better, with not a single sell to be seen. What's more, the consensus 12-month target price sits all the way up at $1,462.02 -- a region not yet touched on the charts. 

The options pits have been full of bulls, too. During the past 10 days 1.59 calls have been bought for every put on the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This sentiment is echoed by Alphabet's Schaeffer's put/call open interest ratio (SOIR) of 0.95, which sits in the 34th percentile of its annual range, indicating that short-term options players have been reaching for calls at a quicker than usual clip. 

That being said, for those wanting to speculate on GOOGL's next move, options are incredibly cheap right now. The security's Schaeffer's Volatility Index of 16% sits lower than all but 4% of readings from the past year, meaning options players are pricing in extremely low volatility expectations for the equity right now. 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI