Alphabet Stock Finds Support at Key Technical Level

GOOG has found support at its pre-earnings report lows. The shares are trading at their year-to-date anchored volume weighted average price (AVWAP), an area that aligns with their six-month moving average.
 
Stalling out at the +10% year-to-date level, there’s potential for a right-shoulder low to form off an inverted head-and-shoulders pattern.

 

 

In the options pits, put support stacks up around the 335-340 strikes, but you need to look at both Class A and C tickers to see the skew.
 
Options are affordably priced as well, with the stock's Schaeffer’s Volatility Index (SVI) sitting in the 15th percentile of its annual range. And with a Schaeffer's Volatility Scorecard (SVS) of 90 out of 100, the security has consistently realized higher volatility than its options have priced in, a boon for options traders options traders.
 
Our recommended October call has a leverage ratio of 10.5 and will double in value on a 10.1% move in the underlying equity.