Alphabet Faces $320 Ceiling as Strategist Predicts 3.75% Slide to $300
With Alphabet trading at $311.69, strategist Charles Moon predicts a drop to $300—sliding 3.75%—and recommends March 2 315-strike puts at sub-$5.25 aiming for a 50% profit. He highlights a technical ceiling at $320 and cites a macro negative tech outlook, with VIX at 21.01.
1. Bearish Technical Outlook
Charles Moon observes Alphabet trading at $311.69 and identifies $320 as a key technical ceiling unlikely to be breached soon. He warns that failure to hold current levels could trigger a 3.75% decline toward the $300 psychological floor.
2. Options Strategy Recommendation
To capitalize on this expected ‘fade,’ Moon proposes buying short-dated March 2 315-strike put options. He recommends aiming for an entry price below $5.25 per contract and setting an initial profit target of 50%.
3. Macro and Volatility Considerations
The strategist points to a negative macro outlook for tech, driven by high capital expenditures and geopolitical instability. He also notes that a VIX reading of 21.01 signals elevated market volatility, which could intensify downside pressure.
4. Recent Performance Metrics
Alphabet shares are down 1.15% year-to-date versus a 1.97% drop in the Nasdaq 100, while they remain up 49.02% over six months and 72.02% over one year. The stock closed most recently at $311.69.