AAL

Traders Hesitant on Overbought GOOGL Stock

Alphabet stock has made modest moves after earnings in recent quarters

Apr 25, 2019 at 2:17 PM
facebook X logo linkedin


Google parent Alphabet Inc (NASDAQ:GOOGL) is preparing to report earnings, hoping to replicate the success of other large-cap tech stocks we've seen this week. Ahead of the event, scheduled for after the close next Monday, April 29, there's an unusual setup in GOOGL's options pits. Specifically, put open interest is greater than call open interest among contracts expiring within three months. This is rarely the case, evidenced by the fact that the security's Schaeffer's put/call open interest ratio (SOIR) of 1.11 ranks just 4 percentage points from an annual high. Peak front-month open interest, meanwhile, sits at the May 1,150 put.

It's not like GOOGL has typically been volatile post-earnings, averaging just a 3.4% swing after reports in the last two years. But there is reason to be cautious, since the equity's 14-day Relative Strength Index (RSI) of 70.6 just ran into overbought territory once again, after a similar signal preceded a brief pullback last month. The stock's 14-day RSI shouldn't be surprising, however, since it has gained almost 17% in the past three months, with the stock last quoted at $1,266.40.

googl stock chart

Meanwhile, analysts at BMO raised their price target to $1,200 from $1,100. This comes a day after Google's Wing drone received clearance to deliver items later this year from the Federal Aviation Administration (FAA). Only one covering analyst has anything less than a "buy" rating on GOOGL.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.