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2 Bullish Ways to Exploit Alphabet Stock

Are you searching for a solid platform to support a stronger buy decision? I'd suggest looking past the headlines and at Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). There's solid evidence in favor of believing in GOOGL. Along with two strategies for enabling stronger risk-adjusted returns, the case for buying Alphabet stock is an easy one. Let me explain.Source: Valeriya Zankovych / Shutterstock.com The verdict is in. No, not the one against Alphabet and peers Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB) and Amazon (NASDAQ:AMZN). Don't forget, U.S. authorities are investigating those companies for flexing monopolistic muscle over consumers. That decision won't be known for some time. For GOOGL stock investors, it's price action above all else which matters most.Bottom line, despite combustible headlines and elevated market volatility this past month, a bullish technical-based follow-through day on Aug. 13 has been confirmed. I've discussed this a number of times in recent InvestorPlace articles.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHistorically, almost every significant market rally has begun with this type of bottoming action. As much, I can't understate the importance of the follow-through day when considering a buy decision in highly correlated, market-weighted stocks. Coupled with GOOGL's recent burly earnings beat and the fact that shares are at a key inflection point on the price chart, it's time to put Alphabet on the radar for a stronger purchase. GOOGL Stock Price ChartTechnically, Alphabet stock's earnings-driven spike of nearly 10% last month proved key in dismantling a price chart which had been prone to a much larger correction. The timing of the bullish reaction immediately before the broader market came under pressure was unfortunate. But, not entirely.A bearish environment for risky assets resulted in a lower high and GOOGL shares sliding back beneath key lateral and psychological price resistance of $1,200. Nevertheless, with the market's follow-through day in place, investors can use the pullback in Alphabet stock to their advantage. Two Alphabet Stock StrategiesThe first approach to going long Alphabet stock is to buy shares on a move through $1,207. This entry waits for a breakout above price resistance. I wrote about this strategy a couple weeks back in an article on gaming stocks to buy. With the additional time to consolidate and a more positive market environment, a second attempt entry is all the more compelling. I'd recommend sizing the position for a blended exit below $1,135 if necessary.Another means to gain long exposure in GOOGL is through Alphabet stock's options. Using a limited and reduced risk, entering a position today makes enough sense. One strategy I favor is the Dec $1,250/$1310 call spread.This Alphabet vertical is priced for around $20 or less than 2% of the risk associated with owning shares. If GOOGL can rally into the year's end and hit marginally new all-time-highs. You can extract a profit of $40 or return of 200% from the position versus a return of approximately 10% in Alphabet stock.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Are you searching for a solid platform to support a stronger buy decision? I’d suggest looking past the headlines and at Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). There’s solid evidence in favor of believing in GOOGL. Along with two strategies for enabling stronger risk-adjusted returns, the case for buying Alphabet stock is an easy one. Let me explain.” data-reactid=”11″>Are you searching for a solid platform to support a stronger buy decision? I’d suggest looking past the headlines and at Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). There’s solid evidence in favor of believing in GOOGL. Along with two strategies for enabling stronger risk-adjusted returns, the case for buying Alphabet stock is an easy one. Let me explain.

Alphabet is Making Up for Google’s Lost Cloud Decade

Source: Valeriya Zankovych / Shutterstock.com

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The verdict is in. No, not the one against Alphabet and peers Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB) and Amazon (NASDAQ:AMZN). Don’t forget, U.S. authorities are investigating those companies for flexing monopolistic muscle over consumers. That decision won’t be known for some time. For GOOGL stock investors, it’s price action above all else which matters most.” data-reactid=”24″>The verdict is in. No, not the one against Alphabet and peers Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB) and Amazon (NASDAQ:AMZN). Don’t forget, U.S. authorities are investigating those companies for flexing monopolistic muscle over consumers. That decision won’t be known for some time. For GOOGL stock investors, it’s price action above all else which matters most.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Bottom line, despite combustible headlines and elevated market volatility this past month, a bullish technical-based follow-through day on Aug. 13&nbsp;has been confirmed. I’ve discussed this a number of times in recent InvestorPlace articles.” data-reactid=”25″>Bottom line, despite combustible headlines and elevated market volatility this past month, a bullish technical-based follow-through day on Aug. 13 has been confirmed. I’ve discussed this a number of times in recent InvestorPlace articles.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="InvestorPlace – Stock Market News, Stock Advice &amp; Trading Tips” data-reactid=”26″>InvestorPlace – Stock Market News, Stock Advice & Trading Tips

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Historically, almost every significant market rally has begun with this type of bottoming action. As much, I can’t understate the importance of the follow-through day when considering a buy decision in highly correlated, market-weighted stocks. Coupled with GOOGL’s recent burly earnings beat and the fact that shares are at a key inflection point on the price chart, it’s time to put Alphabet on the radar for a stronger purchase.” data-reactid=”27″>Historically, almost every significant market rally has begun with this type of bottoming action. As much, I can’t understate the importance of the follow-through day when considering a buy decision in highly correlated, market-weighted stocks. Coupled with GOOGL’s recent burly earnings beat and the fact that shares are at a key inflection point on the price chart, it’s time to put Alphabet on the radar for a stronger purchase.

<h3 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="GOOGL Stock Price Chart” data-reactid=”28″>GOOGL Stock Price Chart

Technically, Alphabet stock’s earnings-driven spike of nearly 10% last month proved key in dismantling a price chart which had been prone to a much larger correction. The timing of the bullish reaction immediately before the broader market came under pressure was unfortunate. But, not entirely.

A bearish environment for risky assets resulted in a lower high and GOOGL shares sliding back beneath key lateral and psychological price resistance of $1,200. Nevertheless, with the market’s follow-through day in place, investors can use the pullback in Alphabet stock to their advantage.

<h3 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Two Alphabet Stock Strategies” data-reactid=”38″>Two Alphabet Stock Strategies

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The first approach to going long Alphabet stock is to buy shares on a move through $1,207. This entry waits for a breakout above price resistance. I wrote about this strategy a couple weeks back in an article on gaming stocks to buy. With the additional time to consolidate and a more positive market environment, a second attempt entry is all the more compelling. I’d recommend sizing the position for a blended exit below $1,135 if necessary.” data-reactid=”39″>The first approach to going long Alphabet stock is to buy shares on a move through $1,207. This entry waits for a breakout above price resistance. I wrote about this strategy a couple weeks back in an article on gaming stocks to buy. With the additional time to consolidate and a more positive market environment, a second attempt entry is all the more compelling. I’d recommend sizing the position for a blended exit below $1,135 if necessary.

Another means to gain long exposure in GOOGL is through Alphabet stock’s options. Using a limited and reduced risk, entering a position today makes enough sense. One strategy I favor is the Dec $1,250/$1310 call spread.

This Alphabet vertical is priced for around $20 or less than 2% of the risk associated with owning shares. If GOOGL can rally into the year’s end and hit marginally new all-time-highs. You can extract a profit of $40 or return of 200% from the position versus a return of approximately 10% in Alphabet stock.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits.” data-reactid=”42″>Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits.

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