Option Focus | Alphabet's $1.45 Million Call Sale at $350 Strike Signals Bearish Premium Collection, Outweighs a Smaller Bullish Bet

Option Witch
Jul 22

Alphabet Inc. closed at $346.19, down 1.47%.

The session was dominated by two large, multi-year dated options trades, with a massive short call sale at the $350.00 strike significantly outweighing a smaller long call purchase at the $400.00 strike, indicating a primary focus on premium collection over aggressive upside bets.

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Options Indicators

GOOG’s implied volatility is 40.11%, and with an IV percentile of 88.45%, current option volatility sits in an elevated range, indicating that options are priced expensively relative to their own recent history. The IV/HV ratio of 1.19 further suggests implied volatility is running above realized volatility, reinforcing the view that the options market is embedding a richer premium for near-term movement. The Call/Put volume ratio is 1.85.

Large Trades

A CALL sale worth $1.45 million was the largest large trade of the session, with 1,160 contracts sold at the 350.0 strike expiring on 2026-08-07. With GOOG referenced at 346.19, this call was slightly out of the money at the time of execution. As a single-leg short call, it reflects a bearish to capped-upside view, suggesting the trader was likely collecting premium while positioning for the stock to remain below 350.0 into expiration or at least not rally aggressively beyond that level.

A CALL purchase worth $0.34 million was the other notable large trade, with 1,399 contracts bought at the 400.0 strike expiring on 2026-08-21. This strike was clearly out of the money versus the 346.19 reference price, making it a higher-conviction upside bet that would require a meaningful advance in GOOG to pay off. As a single-leg long call, the trade is directionally bullish and indicates the buyer was seeking leveraged upside exposure over the August 2026 timeframe.

Overall sentiment across all large trades was bearish, with total bearish premium at $1.45 million versus total bullish premium at $0.34 million, leaving a net bearish difference of $1.11 million. The directional takeaway is clearly negative, because the dominant flow was the much larger out-of-the-money call sale, which outweighed the smaller speculative upside call buy. In combination, these trades suggest the market’s large-size participants were more focused on fading upside and harvesting premium than positioning for a strong breakout higher.

Strategy Reference

For traders leaning bearish and seeking to collect premium in a high-IV environment, selling an out-of-the-money call spread, such as selling the $350 strike call and buying the $360 strike call, could define risk and reduce margin requirements compared to a naked short call.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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