Schwab Network on $GOOGL (Oct 27, 2026)
GOOGL shows a bullish double-bottom setup retesting the July 23 low and holding above 314-317. Earnings are unpredictable and technicals may not hold, so profits are a gamble; a 345/347.5 debit spread expiring November 20 gives 4-to-1 risk-reward and time if results arrive late.
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to take a closer look at Alphabet ahead of that report's release. Well, Alphabet will be front and center of attention tomorrow, But as you look at Alphabet's technical situation ahead of the earnings event, is there anything that catches your eye?
Well, one of the things that really catches the eye is that we are witnessing a double bottom. We are retesting that low level recorded on July 23, and I like to see that when it comes to my technical analysis.
The setup area we are currently positioned above is between 314 and 317, but I also have another setup area in case we break that area downwards. It's a huge block, ranging between 296 and 309.
What I want to say about this is that the profits are a gamble in both cases. So , just know that technical analysis doesn't always hold up during earnings announcements , but as long as we have a trade where we know how much we're risking, it's worth a try. I'm ready to try it.
Explain to me a model of a potential deal we might see for Alphabet. I am particularly interested in the time frame you have set for this deal, because, as we have discussed, we have this earnings catalyst coming tomorrow. It is unpredictable.
So, what I have for you is a "debit spread" deal that expires on November 20th. Buying options at prices of 345 and 347.5. The reason I chose that date is that if we achieve strong results tomorrow, that will be fantastic.
We will move forward and drive the market with Google. But if that doesn't happen, you'll still have some time to allow the deal to succeed.
Therefore, that deal also has an excellent risk-reward ratio. It's at a ratio of 4 to 1. You can risk $500 to earn $2000 if you have 10 contracts. That's why I chose this deal for Google.
Good. So, as we look at it, the breakeven point for this deal is 345.50. Currently, we are up slightly less than 2% in the session and trading at 322.20 .
You've made a good point here. You said that if we perform better than expected, we might see an upward move, but you secured some time in case that performance comes a little late.
Tammy, we really appreciate you taking a closer look at Alphabet, one of those big names that will be releasing its results tomorrow after the close, along with Microsoft.
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