GOOGL Stock Lower Despite YouTube Music Announcement

Options traders have been bullish on GOOGL

Managing Editor
May 17, 2018 at 9:36 AM
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Shares of Google Alphabet Inc (NASDAQ:GOOGL) are slightly lower this morning after the company announced plans to launch a new music streaming service, YouTube Music next Tuesday, along with a new YouTube Premium service. There will be a free ad-supported version of the music service, while users can pay $9.99 per month for an ad-free version.

GOOGL was down 0.2% at $1,081.86 at last check, continuing its recent volatile run on the charts. On a longer-term basis, however, the stock has been strong, rising 15.1% year-over-year and touching a record high of $1,198 on Jan. 29.

In the options pits, traders have been very bullish in recent weeks, with data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) showing a 10-day call/put volume ratio of 1.84, ranking in the 95th annual percentile. This shows calls have been purchased over puts at a faster-than-usual clip.

What's more, those purchasing premium on Alphabet are in luck. The stock's Schaeffer's Volatility Index (SVI) of 19% ranks in just the 25th annual percentile, suggesting short-term options have rarely been cheaper, from a volatility standpoint.

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