Options traders are pricing in a meaningful move for Google (GOOGL) stock ahead of its Q1 earnings, with shares trading around $350 at the time of writing. The at-the-money strike is also $350, with the call priced at about $10.30 and the put at around $10.00, creating a straddle of roughly $20.30. That equates to an implied move of 5.8%, or $240 billion, for the tech giant. Based on this, traders are implying a post-earnings range of roughly $330 on the downside and $370 on the upside.
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Looking at nearby strikes helps confirm this setup. For example, the $347.5 straddle, with an $11.80 call and an $8.40 put, comes out to roughly $20.20, while the $352.5 straddle, with a $9.11 call and an $11.00 put, totals around $20.10. This consistency across different strikes shows that the market is firmly pricing in about a $20 move regardless of slight differences in positioning.
In terms of activity, volume is fairly balanced, with solid trading on both calls and puts near the money. This suggests that traders are actively positioning on both sides rather than leaning heavily in one direction. For investors, this means that the earnings report is expected to be a major catalyst, with the potential for a sharp move outside the $330–$370 range if results significantly surprise.
Are GOOGL Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 26 Buys and five Holds assigned in the past three months. Furthermore, the average GOOGL price target of $387.68 per share implies 11.1% upside potential.
