GOOGL shares are down ~17% from all-time highs due to release delays and talent loss, but the overall trend remains upward.

Alphabet (Google) is taking another step in the artificial intelligence race, having unveiled its Gemini 4 Argon processor. The company describes it as its most advanced model in the field of artificial intelligence, asserting that it greatly improves programming performance, or rather cybersecurity, and facilitates the completion of complex tasks in sectors such as finance and law.

Google already uses Argon to provide storage space in its data centers without needing to purchase additional hardware . It was launched in collaboration with some cybersecurity partners, in addition to conducting government security assessments before its release to the public.

It is worth noting that this launch comes a week after CEO Sundar Pichai signed an AI security agreement , along with a number of top tech figures and President Trump.

Alphabet Google shares initially rose after this news , but later declined in conjunction with some general weaknesses in the market that we are seeing today.

Now, it's time to analyze Alphabet's situation. before we talk about Alphabet's deals, let's hear your opinions about Alphabet and Google.

As you know, it seems that Alphabet's turn at Google has come , hasn't it? Every week or two, an AI company launches its new product, and this AI is Gemini 4 Argon.

Its title may sound like a science fiction movie title, but it is essentially their latest artificial intelligence model, which is to be expected from these companies. They will all make improvements.

They are still working on these models, and some of the statistics are very good.

It has set a new record in real-world software engineering, tied for first place in cybersecurity, and leads another performance benchmark in finance, law, and other fields.

So, you know, what makes Gemini special is that when it does something, it does it on a massive scale. It is slower than the others. It sounds like the turtle- in-the-hair effect Gemini creates, but when they do create something, it's usually amazing, and usually—and this is a problem for other companies—the cheapest or least expensive .

So, yes, it's an important day for Google's Alphabet . The stock didn't react much, but as you know, the day isn't over yet, Diane.

Yes, as Kevin mentioned, the stock is down about $13 from its intraday highs, and about 17% from its recent all-time highs . He was under pressure because they had temporarily halted this release.

Some key members of the AI team left and moved to other companies. This had a negative impact on the release .

Now, they release it to cybersecurity companies first, right ? They want to conduct the necessary checks on Argonne's new Gemini model that they are releasing.

Well, they will be able to use it. They have used it internally in quantum computing, cloud computing, and all of their various business sectors .

Therefore, it appears to be in line, in terms of metrics, with the latest OpenAI release, Claude 5.1, Claude Fable. So, it is in line with them, as well as in terms of pricing.

But they are trying to catch up with some of their rivals at this stage. I think one of the keys, you know, is to look at Google's Alphabet and how it relies on the advertising side of its business , but its cloud business grew in the last quarter by 82% year-over- year. That exceeded expectations.

The advertisements grew. YouTube ads grew by 13%. Search and other advertising grew by 17% in the last quarter on a year-over-year basis. All of their business sectors are performing excellently, especially cloud computing, but they need to keep up with other companies that release new models periodically .

Now, there is competition coming from cloud computing, which was not a real competitor in this pioneering field, but is now a strong competitor. Therefore, the competition is fierce.

We wonder what will happen to the prices of some of these models in the future. With increasing competition, it seems that everyone is releasing something new every two weeks or weekly.

The question is: what are institutions, companies, and individuals using? Which AI robot are you using, Diane?

I know, I know, that's the question: which one should we use ? I spoke to some of our guests and I will ask them: Which one do they use? Which one do they prefer?

I am curious, I will say curious cautiously, about Muse. There is a colleague here who has set up an AI agent, and it appears that he is not fully managing his business.

When I say colleague, I don’t mean someone who works for Schwab, but a colleague in the field who was running his AI program. I apologize for the quick side conversation with you today; the program was looking for something, but couldn’t find it.

So I said to him: As you know, you have to fire the new artificial intelligence program that you spent hours programming.

Anyway, let's move on to examples of deals. Kevin, let's start with your deal. What is your strategy today?

As I mentioned, the stock is currently trading at around 340. It was trading at a slightly higher price a short time ago . So, the stock came under some pressure today, but I looked at the buy options and gave myself a short window of opportunity .

Diane set a date of October 23, approximately three weeks, for this to happen, and looked at a long-term vertical buy position . I bought the call option at 345 and sold the call option at 365.

Remember, the expected movement is about $20. I was a bit ambitious in my choices when I bought the call option at 345. You could buy a call option at 340 and then buy a call option at 360, but I chose the vertical call option at 345 and 365.

The stock price was trading at around $6, while I was trading at a little over $5.50, Tom, but this option gives you a longer duration and allows you a price movement of up to $20.

As I said, the stock price was trading at a level close to the average. So, I was a little optimistic , and of course I'm optimistic about this deal, Tom. Look at the vertical purchase option at $20.

If you're right, it's a winning option , but what happens with a long vertical buy option, Tom? As you know, you need price movement for this option to be profitable.

Okay, let's take a look at this. As you can see, Kevin bought a weekly option on October 23. That is, he stayed in this center for more than three weeks . This gives you a chance to win, doesn't it?

Buying a call option at 345, which is about five dollars out of the profit range. Then sell it to recoup part of the cost of buying the call option, by selling the 365 call option , which is a $20 wide vertical call option, with about $6 paid in fees, as Kevin mentioned.

The stock is likely trading at around five and a half dollars now because its price has dropped. But if you pay the $6 fee , you take a risk of $600 per trade. This risk could extend to $20, couldn't it?

If the price returns above 365 within the next 22 days. So, keep that in mind.

It's a good deal in terms of the potential risk-to-reward ratio. If you pay $6 as a discount, the breakeven price will rise to 351. Well, as I mentioned earlier, the price of this stock was 353 in today's trading session.

That is, it was above the breakeven point at the market opening. Therefore, it has the ability to rise.

Now, you need a rise of $11 to break even at 351. So, keep that in mind when making trades like this. Could the price return to above 351? Because this is the price at which I will start making a profit on this deal.

However, the trend is upward, and this is evident in the purchase of the call option. Because you are buying it, you do not have to wait 22 days until the expiry date and hope that the price will be higher than the break-even point to make a profit.

If the price starts to rise, if it starts to expand, you have the option to close the trade before the expiry date if the market is open and allows you to do so. This gives you greater flexibility in managing the deal.

Kevin, I took a more conservative approach to my deal, and I'm sure the prices are different too because the stock has declined. I looked at a more conservative strategy, involving greater risk than reward, but with a better chance of success in this deal.

I bought monthly options on October 16, which expire in about two weeks, and I sold an out-of-profit call option at an execution price of 352.5, and then I bought a call option at an execution price of 357.5.

That is, I sold a neutral-to-bear vertical buy option for only $5. You are accumulating an approximate profit. Previously, the share price was around $1.20. Now, maybe around $1.10.

But the profit you collect is what you can earn from this deal.

So, if I accumulate $1.20, the profit will be $1.20 with a risk of $3.80. So, this is the trade-off we are talking about. I have a greater risk than potential return in this deal , but I have a better chance of success, Keif.

Yes, do you know what I did? You have shortened the duration of your contracts because you will still profit even if nothing happens. Therefore, the closer we get to the expiry date , the better.

My contract needs to be acted upon, so I gave it a longer term. If you have learned anything from this section, understand this. If you are selling on a price range and want the expiration date to come as soon as possible, shorten the term of your contract.

If you need to make a move, give yourself more time and a longer date.

So, yes, it is a high-probability deal, it combines the value of theta, and that is the definition of risk. Just be careful that it doesn't end up between the two execution prices. A little neutral to my downward bias, Tom.

Yes, the break-even point in this deal if you sell it for $20, $35,370, $70 up. So, you have a large profit margin, and the probability that the short buy option at an execution price of 352.5 will be out of profit at the expiration date in the next fifteen days is about 72%.

Therefore, higher chances of success mean lower profit and greater risk, but with a better chance of winning in this case. So, here it is, a slightly more passive strategy than Kevin's vertical upward directional strategy , Diane.