GOOGL closed on December 12 at $309.29 and remains below its recent peak of $323.44, yet the market still sees upside potential. A valuation based on free cash flow points to a target around $400 per share over a one-year horizon.

One relatively conservative way to play this upside is by selling near-term out-of-the-money puts. For example, a $295 strike put expiring January 16, 2026 offers a premium of about $5.23, which equals roughly a 1.77% monthly yield if the price stays above the strike.

The received premium can then be used to partially fund in-the-money calls with a longer maturity. This approach allows participation in Google’s upside with lower upfront costs and a smoother risk profile compared to buying shares outright.

The logic of the strategy is that option premiums can offset costs in a sideways market, while amplifying returns if the stock rises. The main risk remains standard for such setups: if the price falls below the strike, the puts may result in buying shares at the predetermined level.