Noteworthy Tuesday Option Activity: AVGO, GOOG, MS

Alphabet (GOOG) and Morgan Stanley (MS) are experiencing significant options trading activity today, with GOOG options volume reaching 46.6% and MS options volume 42% of their respective average daily stock trading volumes. Notably, a substantial portion of this activity is concentrated in long-dated call options expiring July 2025, specifically the $185 strike for GOOG and the $145 strike for MS, indicating strong bullish positioning or strategic hedging for potential future price appreciation in both equities.

Analysis

Significant options market activity has been observed in Alphabet (GOOG) and Morgan Stanley (MS), indicating focused investor interest. GOOG's options volume today reached 135,338 contracts, equivalent to 46.6% of its average daily stock trading volume—a substantial level of derivative activity relative to the cash equity market. Similarly, MS saw options volume of 24,342 contracts, representing 42% of its average daily share volume. The activity is notably concentrated in specific long-dated call options: 17,387 contracts of the GOOG July 18, 2025, $185 strike call have traded, and 2,424 contracts of the MS July 18, 2025, $145 strike call have changed hands. This concentration in out-of-the-money calls with a long-term expiration horizon suggests a strong bullish conviction from a segment of the market, anticipating significant price appreciation in both stocks over the next year. Such large, targeted trades may represent institutional positioning or a significant speculative bet on the future performance of these companies.

Key Decisions for Investors

• The high volume in long-dated call options for GOOG and MS signals a strong bullish sentiment, which long-term investors may view as a positive indicator supporting an existing or new position.