The ink’s barely dry on Alphabet’s latest earnings report, and Wall Street’s already buzzing. On April 24, 2025, the tech giant dropped numbers that sent its stock soaring—revenue hit $90.23 billion, up 12% from last year, with earnings per share at $2.81, blowing past what analysts scribbled on their notepads. Google’s ad machine churned out an 8.5% revenue bump, while its cloud business flexed a 28% jump. Oh, and they tossed in a $70 billion stock buyback for good measure. The market’s response? A 5% spike in after-hours trading, with shares clawing back from a shaky April. Now, options traders are piling in, betting Alphabet’s found its floor and is ready to climb.
The play’s straightforward but bold: buying call options. These contracts let traders lock in a price to buy Alphabet stock later, banking on the share price shooting higher. Data from the options market shows a surge in activity post-earnings—call option volumes spiked, especially for contracts expiring in May and June 2025, with strike prices clustered around $180 to $200. It’s a calculated move. Alphabet’s been battered by macro jitters and fears of an AI spending slowdown, but the earnings report slapped those worries down. The company doubled down on its $75 billion capital expenditure plan, signaling it’s all-in on AI infrastructure. Traders see this as a green light—Alphabet’s not just holding ground; it’s charging forward.
Why the confidence? The numbers don’t lie. Google Cloud’s growth is outpacing rivals, and the ad business, despite a choppy economy, held firm. The buyback announcement adds fuel—fewer shares floating around could nudge the stock price up over time. Plus, Alphabet’s acquisition of cybersecurity firm Wiz for $23 billion, confirmed in the earnings call, shows it’s not sitting on its hands. Traders are reading the tea leaves: if Alphabet keeps executing like this, the stock’s April lows might be the last pit stop before a rally.
The options bet isn’t without grit. Call options are cheap when sentiment’s sour, but they’re not free. If Alphabet’s stock stalls or macro headwinds—like rising interest rates or a global slowdown—kick in, those contracts could expire worthless. Still, the market’s buzzing with chatter about Alphabet’s momentum. The company’s raised its quarterly dividend by 5%, a nod to steady cash flow. For traders, it’s a sign the tech giant’s got the muscle to weather storms.
This isn’t blind optimism. The options surge is backed by hard data—Alphabet’s guidance for 2025 didn’t flinch, and its cloud margins are creeping toward profitability. The stock’s been a rollercoaster, down 10% from its March highs before this week’s pop. Traders aren’t just throwing darts; they’re betting the earnings report marks a turning point. Whether it’s the bottom or a brief breather, the options desks are lit up, and Alphabet’s in the spotlight.
Alphabet’s market cap stands at $2.1 trillion. The stock closed at $171.95 on April 24, 2025, before the after-hours jump. Call option open interest for May 2025 expirations hit 1.2 million contracts, with 60% of trades targeting strike prices above $185.