Interesting GOOG Put And Call Options For March 13th

The article outlines two option strategies on Alphabet Inc. (GOOG): selling a $325 put (bid $12.75) which nets a cost basis of $312.25 versus the current share price of $327.33 and is ~1% out-of-the-money with a 56% chance to expire worthless, yielding 3.92% (33.33% annualized) if it does; and selling a covered call at the $335 strike (bid $13.25) which is ~2% out-of-the-money with a 53% chance to expire worthless, offering a 6.39% total return if called at the March 13 expiration or a 4.05% premium boost (34.39% annualized) if it expires worthless. Implied volatilities are 36% (put) and 39% (call) versus a trailing-12-month volatility of 31%, and the piece presents these as income/YieldBoost ideas for investors considering alternative entry or income strategies on GOOG.

Analysis

Market structure: Short-dated options sellers are the clear near-term winners — OTM March 13 puts ($325 bid $12.75) and calls ($335 bid $13.25) pay a 3.9–4.1% one-cycle yield (33–34% annualized) because implied vol (36–39%) sits ~5–8ppt above realized TTM vol (31%). Buyers pay for optionality; large passive/ETF holders are neutral but face small tracking drift from option rolls. The modest OTM strikes (~1–2% from $327.33) imply market participants expect rangebound action into March, so liquidity providers and short-gamma dealers collect theta while retaining assignment risk.

Risk assessment: Tail risks include a sudden ad-revenue shock or a regulatory headline that wipes >10–15% off GOOG intraday (low-probability but high-impact), and systemic volatility that would invert the short-premium trade. Immediate horizon (days): gamma and assignment risk before March 13; short-term (weeks): earnings/macroeconomic data could reprice IV; long-term: secular ad/AI adoption and regulation drive fundamentals. Hidden dependencies include option roll timing, tax/lot assignment, and concentrated exposure if puts get assigned just before negative catalysts.

Trade implications: Primary actionable tactic is premium capture: sell cash-secured $325 puts to net basis $312.25 (target size 1–3% portfolio) or execute buy-write by buying GOOG and selling $335 call for a 6.4% capped return to March 13. If you want defined risk, sell the 325/315 put spread instead (limits max drawdown ~=$10 width less credit). Because IV>realized, favor short-dated (30–45d) premium sales and limit notional to 0.5–2% equity exposure per trade.

Contrarian angles: Consensus underestimates the cost of assignment and concentrated share accumulation from repeated put-selling — getting long via puts can create unanticipated directional risk into earnings or regulation. The market may be underpricing upside from AI monetization; a buy-write or call-spread (buy stock + sell 335/360 call spread) preserves some upside while collecting yield. Historic pattern: post-earnings IV often mean-reverts lower, favoring short-dated sellers, but repeated selling without hedges risks a forced buy at higher prices during volatility spikes.

Key Decisions for Investors

• Establish a tactical 1–3% portfolio long in GOOG via selling cash-secured March 13 $325 puts at ~$12.75 (effective entry $312.25). Risk-manage by sizing to max 3% and plan to hold 3–12 months if assigned; if GOOG drops below $300, cut size by 50% or roll down.
• If already long GOOG, implement a buy-write: buy shares at ~$327 and sell March 13 $335 calls for ~$13.25 to pocket ~6.4% to expiration; set a rule to buy back the call if GOOG >$340 or IV rises >+5ppt vs today.
• For defined-risk premium selling, sell the March 13 325/315 put spread instead of naked puts (limit width $10, accept smaller credit) and cap allocation to 0.5–1% portfolio per spread.
• Implement a tail-hedge: allocate 0.25–0.5% of portfolio to long deep OTM puts (e.g., 300/285 or single 300 put expiries 2–3 months) to protect against >10% downside events while continuing short-dated premium sales.