Schwab Network on $GOOGL (Oct 28, 2026)

Alphabet (Google) is scheduled to announce its quarterly results after the market closes today. Wall Street is expecting earnings per share of $2.94 on an adjusted basis, and revenue of approximately $112 billion for this quarter.

Stocks have come under pressure this month. However, the stock is still up more than 19% year-on-year. let's talk about the chart first, before the trends related to Alphabet (Google), before we move on to a trading model.

I think if you take a closer look at what's happening at Alphabet, don't you ? The stock has risen 2% so far in 2026, hasn't it?

Therefore, its performance has been lower than that of many other major technology companies, especially some of the giant cloud computing companies. We have seen a slight increase this week.

But if you look at it over the past 3 years, I mean the stock is still up about 164% during that period.

So, although we haven't seen the same gains as other big technology companies recently , it has performed brilliantly over the past three years. A one-day chart for one year is available here for Google (Alphabet).

You mentioned that it has only risen by 2.6% so far this year. It's 21 % lower than its all-time high, which was in May, isn't it? It has been 5 months since this stock reached its all-time high . So, his performance was poor,

but you can see two key levels here. These are the 50-day and 200-day simple moving averages that you can focus on. They are getting closer . We have seen the 50-day simple moving average trend downwards as the stock underperforms, while the 200-day moving average below in blue has started to flatten out a little. So, we have witnessed that convergence.

There may be a risk of a large and disproportionate movement before earnings are announced. This is one of the things you should take a look at. Now, at the bottom of this chart, Diane , you will see the Relative Strength Index (RSI), and although it has risen slightly in the last two days, it is still at a low level of around 39.

So, any level below 30 is technically considered an "oversold" zone . Well , we are starting to see a little upward momentum, but it is still very far from the midpoint level of 50 on this index.

If the 50-day simple moving average falls below the 200-day moving average, we will get a "death cross" . This is the context area that traders will have to watch, and around 341.87 are the levels I'm watching for the upside .

On the downside, we have a good base that has formed here. Remember, we visited this area around 320-325 last July. Will it hold up again as the earnings announcement approaches ?

So, keep an eye on this area, which may bottom out around 320, where we might see some support.

On the upside, there are no major headwinds to speak of. The 358 area might be a zone that creates some resistance, along with the contact point you mentioned around 340 to 342.

I took a slightly more aggressive view of this due to the poor performance here, and the limited time available . This is not simply a matter of betting on profits. As you know, earnings will be released tonight after the close.

I did not use the October 30th weekly course. I have moved on to my November monthly cycle. Therefore, I am giving myself 3.5 weeks in this bullish trading deal.

If you think the stock will bounce back, perhaps to catch up with other cloud computing companies in this field. In the November options expiring on November 20th, after 23 days, we will buy the call option at a strike price of 325, and in return for compensating for some of the risk, we will sell the call option at a strike price of 350.

So, a vertical call trade with a range of $25, you will pay an approximate cost of $8. That is your risk, $800 per contract, and that determines the breakeven point. You can see that here from the risk profile, going up to 333 over the next three and a half weeks.

This represents a rise of only 2.5% from the current price of Alphabet Google shares , if it opened at around 324.

Now, the options market for the November series of contracts, in which you buy this "vertical call", is pricing in an upward or downward move of $32. Okay, so what corresponds to this expected move of $32? Around 350.

So, risking $800 for a potential profit of $1700 is a very good risk-to-reward ratio if you are optimistic about this stock post-earnings.