Alphabet Sees Sell-Off in $160 Call Options Amid Reports DOJ May Seek Google Breakup
$Alphabet-A (GOOGL.US)$ is seeing the heaviest volume in call options that give the holders the right to buy the stock at $160 after the share price fell below that strike price amid reports that the Department of Justice is considering seeking Google's breakup.
The DOJ may seek to break up Google after a court found that the company monopolized the online search market, Bloomberg reported, citing people with knowledge of the deliberations. A less severe option could be to force the company to share more data with competitors and undertake measures to prevent the tech behemoth from gaining unfair advantage over its competitors in products powered by artificial intelligence (AI), according to the report.
Shares of Alphabet fell 3% to $159.20 at 1:10 p.m. in New York, rendering the $160 call options out of the money. More than 52,000 $160 call options changed hands so far, making them most active among contracts in 20 expiration dates stretching through Dec. 18, 2026.
Over half of that total volume in Alphabet options were in contracts expiring in two days. The price of those $160 calls expiring Friday slumped 78% to $1.12.
Even before the news report about the DOJ potentially seeking Google's breakup, Bloomberg Intelligence noted that the company's search revenue, which reached more than $146 billion in 2021, "is vulnerable."
Google Search is part of the Google Services revenue reported by Alphabet in its quarterly earnings.
"Behavioral changes could result in the loss of the default position and market share," Jennifer Rie, a senior litigation analyst at Bloomberg Intelligence said in a note dated Aug. 8. "The ultimate impact would depend on the injunction's breadth and subsequent user behavior."
Still, she said the company will likely appeal the court decision and seek a stay on any remedy proceedings pending its appeal. "The appeal could take more than a year, longer if a Supreme Court review is sought," Rie said.
Still, she said the company will likely appeal the court decision and seek a stay on any remedy proceedings pending its appeal. "The appeal could take more than a year, longer if a Supreme Court review is sought," Rie said.
In total, more than 341,330 Alphabet options were traded so far, including put options across all the expiration dates. That makes Alphabet the fourth most active stock options, behind $NVIDIA (NVDA.US)$, $Tesla (TSLA.US)$ and $Apple (AAPL.US)$. (To see the options ranking, click here.)
Share your thoughts on Alphabet below, and vote if you have a price forecast.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Moomoo Senior News and Community Manager
Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
4456Followers
16Following
12KVisitors
Follow
72589762 : yeah, just crash the whole monetary system so no one has a way to pay for anything except blood sweat and tears. good job team
you really showed them
EZ_money : probably see Google donate a
ton of money to education or research etc....and then nothing. kinda like Microsoft.
104247826 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Ultratech : buy on bad news.
Gman511 :
TOYO 
