Alphabet Q4: Put Options Can Help Hedge Downside Risks Ahead

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Feb. 26, 2025 5:42 PM ETAlphabet Inc. (GOOG) Stock, GOOGL Stock, GOOG:CA StockGOOG, GOOGL, GOOG:CAEnvision ResearchInvesting Group Leader(9min)SummarySince my last writing, Alphabet delivered an overall strong FY 2024 Q4 earnings report, with some unevenness.I see downward price volatility ahead for several reasons, including U.S.-China tariff disputes and various legal battles.Yet, the implied volatilities underlying Alphabet’s put options are relatively low and on par with 52-week average levels.Hence, put options can serve as a cost-effective hedge until the next earnings report.Looking for a helping hand in the market? Members of Envision Early Retirement get exclusive ideas and guidance to navigate any climate. Learn More »vzphotosGOOG Stock: Previous Thesis and Implied VolatilityI last analyzed Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) a little more than a month ago. My last article was titled "Google: Rule Of 40 Still Points To Buy" and was published by Seeking AlphaAs you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If you share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas.We have helped our members not only to beat S&P 500 but also avoid heavy drawdowns despite the extreme volatilities in BOTH the equity AND bond market.Join for a 100% Risk-Free trial and see if our proven method can help you too.This article was written byEnvision Research17.3K FollowersEnvision Research, aka Lucas Ma, has over 15+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.He leads the investing group Envision Early Retirement along with Sensor Unlimited where they offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You