Alphabet Stock Is Still Below Price Targets - Shorting OTM Puts and Calls Works

Alphabet Inc (GOOGL) stock is still below my free cash flow (FCF)-based price target and those from other analysts. Shorting out-of-the-money puts and calls is a viable strategy here, ahead of its upcoming earnings release.

GOOGL is at $256.16 in midday trading on Monday, Oct. 20. My prior target price was $276.75 as seen in a Sept. 16 Barchart article, “Alphabet Stock Off Its Peak - Is It Undervalued? It Could Be If FCF Stays Strong.”