Google's Stock Valued at $3 Trillion: Strategies for Capitalizing on the Surge Whilst Securing Your Assets
In recent times, Alphabet, the tech giant also known as Google, has been making headlines. The company recently became the fourth company to cross the $3 trillion market capitalization threshold, representing a combined 4.7% of the S&P 500.
The stock price of Alphabet, trading under the ticker symbols GOOGL and GOOG, has been on an upward trajectory. Since September 3, GOOG has risen nearly $21 a share, currently trading at $251.
However, as with any investment, it's essential to consider risk management strategies. Two such strategies that have been discussed in relation to GOOG are the collar strategy and the 'married put' strategy.
The collar strategy for GOOG would cost 2% of the stock price, implying a break-even point of $255. This strategy provides a more than 2:1 upside/downside ratio, but it comes with more downside risk. On the other hand, the tradeoff for the 'married put' strategy is less downside risk but a higher break-even point on the stock, at $272.
It's important to note that the search results do not contain information about the name of the hedge fund or the person who described these options strategies on Google stocks. The choice between strategies depends on personal preference and risk management strategy.
In terms of technical indicators, GOOG's Percentage Price Oscillator (PPO) has surged from negative territory to matching its 2021 level, which might be a potential sign of weariness or a potentially toppy stock market today.
Alphabet's website's tools make it easy to stretch out the weekly view to 10 years, allowing for a comparison of the stock's technical 'valuation' over time. Alphabet's 5-year trailing beta is 1.01x, indicating it has been only as volatile as the broader S&P 500 Index.
Optimism for GOOG may be greater, but risk management is advised due to potential signs of market top in the stock market today. The author, Rob Isbitts, did not have positions in any of the securities mentioned in the article.
In conclusion, while Alphabet's market performance has been impressive, it's crucial to consider risk management strategies when investing in stocks like GOOG. Always conduct thorough research and consult with a financial advisor before making investment decisions.
