Reddit User Reports $200k Profit on Google Options Amid AI Innovation Surge

This analysis is based on a Reddit user’s report [1] published on November 6, 2025, documenting a profitable options trade on Google (GOOG). The user closed January 16, 2026 $150 call options purchased in July 2025 for $37.22 per contract, selling them for $137.22 - a 283% return generating approximately $200,000 in profits. The user remains bullish on Google and plans to convert options gains into share purchases.

Google’s stock performance during the options holding period was exceptional, with GOOG rising 62.70% from $176.81 to $287.67 [0]. The stock currently trades at $287.76, up 1.06% on November 6, 2025, despite broader technology sector weakness of -0.9151% [0]. This outperformance suggests company-specific catalysts driving the stock higher.

The options trade was strategically positioned with a $150 strike price, representing approximately 52% below the current stock price, providing substantial intrinsic value [0]. The 4-month holding period captured significant momentum during a transformative period for Google’s AI initiatives.

Multiple significant developments likely contributed to Google’s strong performance:

: Google unveiled its 7th generation “Ironwood” TPU delivering 4,614 FP8 TFLOPS performance, substantially exceeding competing platforms [2]. This technological advancement reinforces Google’s position in the AI infrastructure race.

: Reports indicate Google’s Gemini AI could power next-generation Siri in a potential $1 billion deal with Apple [3]. Such a partnership would significantly expand Gemini’s reach and validate Google’s AI capabilities.

: Google is constructing a secret AI data center on Christmas Island following a cloud computing agreement with Australia’s military [4]. This expansion into defense applications diversifies revenue streams and demonstrates AI capabilities at scale.

: Google added Gemini’s Deep Search to Google Finance, incorporating prediction market data from Kalshi and Polymarket [5]. This integration showcases practical AI applications across Google’s product ecosystem.

Google’s underlying fundamentals support the bullish thesis with strong profitability metrics [0]:

• Market capitalization of $3.47 trillion
• P/E ratio of 28.38x (reasonable for growth technology)
• Return on equity of 35% (excellent profitability)
• Net profit margin of 32.23% (strong operational efficiency)
• Analyst consensus shows 87.3% Buy ratings with $330 target price, implying 14.7% upside potential [0]

Despite the positive outlook, several risk factors warrant attention:

: Google faces trial over youth addiction claims alongside other social media companies [6]. Potential outcomes could include significant penalties and operational restrictions.

: YouTube TV users are losing access to Disney content due to ongoing carriage disputes [7], potentially impacting user experience and revenue.

: The stock approaches 52-week highs at $291.93, potentially facing resistance levels that could trigger profit-taking [0].

: Technology sector underperformance (-0.9151%) despite NASDAQ’s broader decline (-1.17%) may indicate rotation away from high-growth names [0].

The options profit realization coincides with a convergence of AI announcements and partnership developments, suggesting the user benefited from both fundamental improvements and market sentiment shifts. The 4-month holding period captured multiple catalyst phases rather than a single event.

The deep in-the-money call options provided leveraged exposure to Google’s upside while maintaining defined risk. The $150 strike offered substantial cushion against volatility while capturing significant percentage gains as the stock advanced.

Google’s ability to gain 1.06% while the technology sector declined 0.9151% demonstrates exceptional relative strength [0]. This divergence suggests investors are rewarding Google’s specific AI advancements rather than treating it as a generic technology holding.

The user’s plan to convert options profits into share holdings reflects a long-term bullish stance while reducing portfolio risk. This transition from leveraged to direct equity exposure aligns with risk management principles following significant gains.

: The youth addiction trial represents significant legal and reputational risk with potentially material financial implications [6]. Monitoring trial developments is essential for risk assessment.

: Failure to break above the 52-week high of $291.93 could trigger profit-taking, particularly given the stock’s 50.95% year-to-date gains [0].

: Current implied volatility around 33% for January 2026 options suggests elevated uncertainty [1], which could impact both options pricing and stock stability.

: Google’s AI advancements across chips, software, and partnerships create multiple revenue streams. The Ironwood TPU launch [2] and potential Apple partnership [3] represent significant commercial opportunities.

: Strong fundamentals with 35% ROE and 32.23% net margins provide financial flexibility for continued AI investment and shareholder returns [0].

: Despite strong performance, the 28.38x P/E ratio remains reasonable for a technology leader with AI growth prospects, particularly compared to analyst targets of $330 [0].

: Trial outcomes and any new antitrust actions could significantly impact operational flexibility and financial performance.

: Updates on Apple Siri integration and other AI collaborations will be crucial for validating growth assumptions.

: Next quarterly results need to demonstrate continued AI investment ROI and sustained profitability.

: Key resistance at $291.93 and support levels around $275 will provide important signals for short-term price direction [0].

The Reddit user’s successful options trade capitalized on Google’s exceptional 62.7% stock appreciation driven by significant AI developments and strategic partnerships. The company’s strong fundamentals, including 35% ROE and 32.23% net margins, support continued bullish sentiment despite regulatory challenges and technical resistance levels. The technology sector’s underperformance while Google outperforms suggests company-specific catalysts are driving investor interest. Current analyst consensus with 87.3% Buy ratings and $330 target price indicates further upside potential, though monitoring regulatory developments and technical resistance levels remains important for risk assessment.