Alphabet Inc (NASDAQ:GOOGL) stock is sinking 5.4% to trade at $323.32 after the tech behemoth increased its capital expenditures outlook to boost AI backing. The news is overshadowing a Q2 earnings per share of $9.11 on revenue of $119.8 billion, both of which blew past estimates.
The Google parent is now pacing for a fifth loss in six sessions, trading at its lowest levels since April. The year-to-date breakeven mark is also being tested, with the equity eyeing its worst daily drop since May 2025.
Call traders have been moving in on Alphabet stock at a rapid rate. More specifically, the stock's 50-day call/put volume ratio of 2.79 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 78th percentile of its annual range.
Today is no exception, with 154,000 calls and 81,000 puts across the tape within the first half an hour of trading. This is quadruple the typical amount, and meanwhile, the weekly 7/24 350-strike call and August 400 call are seeing the most activity.
Lastly, GOOGL's Schaeffer's Volatility Scorecard (SVS) sits at a lofty 90 out of 100. In other words, this suggests the security has outperformed volatility expectations in the past year.
