My Top Big Tech Option Trade Of The Week

Google GOOGL has been underperforming the other Big Tech stocks lately. This is likely due to falling margins from the AI overview at the top of Google Search pages and Apple’s AAPL inclusion of AI search on its platforms.

This suggests that Google is going to stay weak for the foreseeable future.

Here’s the option play to enable us to profit from that weakness.

Trade structure – the long put spread explained – positioned for short continuation. 

My play here is a long put spread, which positions us for Google to remain weak. A long put spread involves purchasing a long put and financing part of the cost with a short put. 

The stock’s current relative resistance zone sits right around $176 and support sits below at $157, so our long put spread is going to look like this:

• Buy to open 1 GOOG 20Jun 2026 170 puts 
• Sell to open 1 GOOG 20Jun 2026 160 puts 

This long put spread held a current debit of $3.22 at this writing, representing the total risk incurred in the trade. The breakeven price of the stock at expiration on this trade is $166.79 less commissions. 

The highest potential profit is $10 (the distance between the $170 and $180 strikes) less the cost of the debt incurred by buying the long put spread, so $10 – $3.22 = $6.78 minus commissions.

The strategy provides several ways to exit, but here are the main two:

1. To sell the put spread at either the test of $160 or when the profit goal moves into your target parameters – particularly once the middle strike is tested near the expiration time. I often look for a 40%-70% return with these trending trades. 
2. To sell the put spread when your loss threshold is breached. Customarily, this is 30% for me.

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