Bulls Should Keep Watch on Faltering Alphabet Stock

After a pullback to $300 and its 100-day moving average, we’re betting on an intermediate trend higher for Alphabet Inc (NASDAQ:GOOGL) stock. In December, a similar pullback to this level marked the beginning of a rally up to $350. Earlier this month, the shares broke out and cleared a trendline connecting lower highs since earnings in January. We’re looking at another potential rally to at least $350 by April expiry.
 
Short interest recently hit its highest level since May 2021 and looks like it has begun rolling over per its most recent report.

In the options pits, after the pullback started at an area home to a large buildup of call open interest, last week’s low is home to heavy put open interest at $300 and below.
 
Our April call has a leverage ratio of 9.6 and will double on a 10.7% rise in the underlying equity.