Google-parent Alphabet (GOOGL) announced today it will allow users to create and use passkeys on their personal Google accounts. The stock has struggled on the charts of late, turning in six losses in the last seven sessions. However, this drawdown could be beneficial to options traders, as GOOGL just pulled back to a trendline with historically bullish implications.
Alphabet stock is trading within one standard deviation of its 40-day moving average for the sixth time in the past three years. According to Schaeffer’s Senior Quantitative Analyst Rocky White, after pulling back to this trendline, GOOGL was positive one month later 83% of the time and averaged a 5.7% gain. A similar move from its current perch at $105.85 would put the stock at levels not seen since August 2022.
GOOGL options can be had for a relative bargain right now. This is per its Schaeffer’s Volatility Index (SVI) of 29%, which stands higher than just 12% of readings from the past year, suggesting options traders are pricing in low volatility expectations at the moment.
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