Alphabet’s stock is doing well, rising 3.28% today. Since its earnings report on July 23, the stock has jumped by 32.48%. Google also hit a new high, increasing 3.38%. From a low of $140.53 in April 2025, Alphabet shares have soared over $100, an increase of about 77%. A key moment came on September 3 when Alphabet shares jumped 9.1% after a positive court ruling on antitrust issues. Then, they gained another 10.15%. The stock price has moved above a rising trendline drawn from the high in July 2024 to the high in February 2025, signaling a strong uptrend. Sellers need to push the stock below this trendline, which is currently around $224 and rising. The 100-hour moving average sits at $225.80. This is a crucial area: staying above it suggests the upward trend will continue, while dropping below could give the advantage to sellers. Even though the stock is overbought, its momentum is still strong. Buyers remain in control as long as it stays above the important $224–$230 range. Given Alphabet’s robust rally since July, we see the trend as very bullish. The mix of favorable news, like the court ruling on September 3, along with strong technical momentum, makes it risky to bet against this trend. Those wanting to capitalize on it can buy call options with strike prices above the current price, allowing for potential gains while keeping risk defined. This strength isn’t unique to Alphabet. Tesla is also seeing significant gains, showing renewed interest in large-cap tech stocks. In fact, data for the third quarter of 2025 reveals that inflows into technology-focused ETFs have reached their highest level since the market rebound in late 2023. Call option volume for Alphabet has outstripped put volume by nearly 2-to-1 in the last five trading sessions, reinforcing the bullish sentiment. However, we must recognize that the stock is technically overbought after its nearly 77% rise since the lows in April 2025. The important support zone between $224 and $230 is crucial to monitor. If the stock falls below this range, it could shift momentum and lead to a quick pullback. Traders worried about overbought conditions might consider buying put options as a hedge or a speculative bet on a downturn. The sharp correction in tech stocks in late 2021 after a similar surge serves as a cautionary reminder. The implied volatility for October puts has stayed modest, meaning these protective positions can still be acquired without overspending. A balanced strategy could be to use a bull call spread, where one buys a call option and sells another at a higher strike price. This approach lowers the initial cost compared to buying a call alone and still allows for profit if the stock continues to rise. This strategy is wise for staying bullish, while recognizing that the rapid phase of the rally may be slowing down.

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