Every once in a while, a market leader doesn’t just participate in the rally—it drives it. That’s exactly what we’re seeing right now in one of the most dominant names in the digital advertising and cloud technology space. The stock has been pressing relentlessly higher, confirming strength across short, medium, and long-term trends, and traders everywhere are starting to feel the heat. This isn’t the kind of slow grind that gets ignored—it’s the kind of breakout that screams institutional accumulation, the kind that demands attention before it becomes the headline story on every trading desk. Momentum of this caliber is never random—and ignoring it could be a costly mistake.

Alphabet’s latest earnings report wasn’t just solid—it lit a fire under the stock. With Q2 revenue smashing the $96 billion mark—a 14% year-over-year climb—and cloud revenue alone surging 32%, the digital powerhouse is proving that it’s firing on all cylinders. AI continues to drive meaningful growth across Search, YouTube, and its full-stack Cloud platform, reinforcing Alphabet’s role at the heart of the AI-led expansion. Coupled with renewed capital investment and institutional confidence, this breakout setup isn’t just technical—it’s backed by fundamentals that refuse to quit.

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But what really puts this setup over the top isn’t just the fundamentals—it’s the tape itself. The stock’s On-Balance Volume (OBV) line has been steadily rising, a classic confirmation that institutions aren’t just nibbling, they’re pouring in with conviction. This isn’t a fleeting spike or a hype-driven blip—momentum of this durability almost always precedes bigger legs higher. When you see price and volume working in lockstep like this, it’s a signal that the smart money is already in motion… and traders who wait too long risk chasing shadows instead of riding the real move.

For a breakout like this, I’d look to position with a tactical trade setup—a call option debit spread. At current prices, there’s one that offers a 56.3% potential profit if the stock ends up higher, flat, or even down 5% at expiration—and incredibly, the trade would still be on track to win even if GOOGL slipped as much as 7.5%. That kind of built-in buffer gives this setup a much greater probability of ending profitable—exactly the type of edge I want when momentum and institutional flow are aligning this powerfully.

If you enjoyed this breakdown and want to go even deeper into strategies like this, now’s the time: Chuck just released his brand-new e-book, “Stock Market Income Code”—and for a limited time, you can claim your copy absolutely free. Inside, you’ll uncover the same principles our team uses to build high-probability trades and generate consistent opportunities from the market. Don’t wait until everyone else is chasing the headlines—tap the image below to grab your free copy now and get ahead of the crowd.

Wishing You the Best in Investing Success,

Chuck Hughes

Editor, Trade of the Day

Have any questions? Email us at dailytrade@chuckstod.com

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