Better Trade Set Ups While GOOGLing

Well after earnings and seeing the stock pop up, many investors might be wondering what to do next with GOOGL?

GOOGL has been pushing higher since its recent earning announcement, after jumping up to the $900 range last month, it looks as though might be actually ready to take a breather. While the long trend obviously remains on the daily and weekly charts (a stock trading at this high a price is rare), the opportunity to trade this expensive stock lies in understanding how it will move on a shorter term chart like 60 minutes to determine a quality trade entry.

This 60 minute chart is quite telling, this looks like a great opportunity to start selling premium as price hasn’t been making new highs since May 5th. The price of the stock has been moving sideways and looks like it actually might be fizzling out a little, and its not surprising after the year it has had.

Looking at GOOGL over the last few days you can see that it has lost its energy. While implied volatility isn't at its highs prior to earnings, this stock is still packed with premium. So, what do with a $900 stock that is moving sideways? Trade options and sell premium!

Use these moves to your advantage, rather than guess where GOOGL is going next, I will be focused on trading where I think it ‘wont go’ and looking for channels to trade OTM.

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