Alphabet: A Neutral Strategy With High Probability Of Profit
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Fundamental Options1.27K FollowersFollow5ShareSavePlay(24min)CommentsSummaryAlphabet currently trades near my updated Fair Value of $294, reflecting robust growth in Google Cloud, AI, and financial flexibility.Alphabet's diversified revenue streams—Search, YouTube, Cloud, and emerging AI/TPU initiatives—support continued double-digit growth despite natural Search ad deceleration.CapEx is aggressively rising in 2025-2026, but strong cash reserves enable aggressive investment and shareholder returns without leverage risk.My neutral options strategy targets a relatively high ROI with a relatively high probability of profit, starting with a Calendar Spread and continuing with other strategies for unfavorable scenarios.
Getty Images Article Thesis I last talked about Alphabet Inc. (GOOGL) (GOOG) at the end of August, in my article about YieldMax GOOGL Option Income Strategy ETF (GOOY), which is a buy-write ETFThis article was written byFundamental Options1.27K FollowersFollow"Fundamental Options" would be the title of my investing style, because I combine fundamental analysis with the power of options. I use Fundamental Analysis to quantitatively and qualitatively assess individual stocks and ETFs, and I pursue various strategies: Income oriented, especially BDCs, but also Utilities; Growth At A Reasonable Price, especially Tech, having a background in Software Development; Deep Value, based on Discounted Cash Flow and / or other industry specific valuation methods; Dividend Aristocrats.While I usually invest in stocks for long-term, I also have 20-25 strategies involving options that I use for various purposes: hedging stocks; bullish stock / ETF substitutes with improved risk / reward; neutral trades; trading volatility; earnings-related trades.Teaching is another passion of mine, I used to be a formal on non-formal teacher or coach in different areas of life, including authoring of a free local investing newsletter in the last years.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I may initiate a neutral strategy through options on GOOGL over the next 72 hours.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.