4 Trade Ideas for Alphabet: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Alphabet, $GOOGL, comes into the week pressing on resistance at the 50% retracement of the post pandemic move to the upside. It is also at the falling 200 day SMA and outside of the Bollinger Bands®, so a pause may ensue. Those Bollinger Bands are open to the upside though. The RSI is rising in the bullish zone with the MACD positive and rising, good momentum. There is resistance at 102 and 104 then 105 and 108 before 111 and 113. Support lower comes at 100 and 97. Short interest a low under 1%. The stock does not pay a dividend. The company is expected to report earnings next on April 24th.

The March 31 Expiry options chain shows open interest spread from 100 down past 85 but biggest at 90 on the put side. On the call side there is an immense open interest at the 105 strike. In the April options chain open interest increases from 105 to a max at 90, every $5, on the put side and similarly from 85 to a peak at 105 on the call side. The April 28 Expiry covers the earnings report and has biggest open interest at the 95 the 87 put strikes with it spread from 98 to 115 on the call side. Finally, the May chain has biggest open interest at the 90 put and the 95 and 100 call strikes.

Alphabet, Ticker: $GOOGL

Trade Idea 1: Buy the stock on a move over 102 with a stop at 97.

Trade Idea 2: Buy the stock on a move over 102 and add an April 28 Expiry 97/92 Put Spread ($1.82) while selling the May 115 Calls ($1.71).

Trade Idea 3: Buy the April/May 105 Call Calendar ($2.23) while selling the April 90 Put (92 cents).

Trade Idea 4: Buy the May 90/105/115 Call Spread Risk Reversal ($1.16).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the March Quad Witching in the books, saw equity markets showed mixed results in a volatile week.

Elsewhere look for Gold to continue its uptrend while Crude Oil moves lower. The US Dollar Index continues to trend lower while US Treasuries hold in broad consolidation. The Shanghai Composite looks to consolidate while Emerging Markets move to the downside.

The Volatility Index looks to remain elevated making the path harder for equity markets to the upside. Their charts are mixed on the shorter timeframe with the QQQ showing strength while the SPY remains in a pullback and the IWM is trending lower. On the longer timeframe both the QQQ and SPY remain in a short term uptrend with the QQQ leading, while the IWM is in a sideways broad consolidation. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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