GOOG Weekly Cash Secured Puts (2025): Stability in a Rocket Ship

The Experiment

Alphabet (GOOG) had a phenomenal year, rallying 63.3%. We ran our standard battery of tests: 250 weekly trades across 5 delta levels. This completes our "Big Tech" series alongside TSLA and NVDA.

With such a massive directional move, we expected CSPs to underperform the stock. The question is: did they offer enough stability to be worth it?

The Results: Performance by Delta

As expected, more aggressive deltas performed better. The -0.5 Delta strategy generated $5,633 in profit (26.4% ROIC).

However, compared to the underlying stock's 63.3% gain, even the best option strategy captured less than half the upside. If you are bullish on Big Tech, selling puts is a "defensive" play, not an "aggressive" one.

Equity Curve Analysis

Here is the silver lining: Look at the -0.1 Delta (Blue) line. It is a near-perfect staircase upwards. 98% win rate means you almost never realized a loss.

Even the -0.5 Delta (Purple) curve is relatively smooth compared to the chaos we saw in NVDA. GOOG was a "gentle giant" in 2025.

The "Profit vs. Pain" Ratio

This is where -0.1 Delta shines. You made $2,225 while risking a drawdown of only $271. That is an incredible 8:1 ratio.

Contrast this with -0.5 Delta: You made $5,633, but had to endure a $3,755 drawdown. The ratio drops to 1.5:1. Much more stress for the extra return.

The Hidden Trap: Avg Win vs. Avg Loss

Unlike the 15x ratio in NVDA, GOOG's -0.1 Delta had a manageable risk profile: Avg Loss ($271) was about 5x Avg Win ($51).

For -0.5 Delta, the ratio improves significantly: Avg Loss ($592) vs Avg Win ($360) is only 1.6x. This shows GOOG was a "well-behaved" stock for selling puts.

The "Headache" Factor: Assignment Frequency

The -0.1 Delta strategy was nearly passive: only 3 assignments all year. You spent 94% of the year just collecting premiums.

The -0.5 Delta strategy was busier, with 19 assignments. Still, this is less than NVDA (23) or TSLA (28), confirming GOOG's relative stability.

Efficiency: Premium Capture Rate

The -0.1 Delta strategy kept 85.5% of every dollar sold. It is highly efficient.

The -0.5 Delta strategy dropped to 29.5% efficiency. You did a lot of work (selling $19k in premiums) to keep only $5.6k. The "churn" cost is high.

The Bottom Line: ROI vs. Buy & Hold

Buy & Hold is the clear winner with 63.3%. No CSP strategy came close.

However, 11.1% return from -0.1 Delta is nothing to sneeze at, considering it came with extremely low volatility and drawdown. It acted like a high-yield bond on a tech giant.

The Verdict: Strategy Scorecard

1. The "Growth King" (Buy & Hold): 63% return. If you are bullish, just buy the stock.

2. The "Safe Yield" (-0.1 Delta): 11% return with 98% win rate. Perfect for conservative accounts looking for better-than-bond yields.

3. The "Middle Ground" (-0.2/-0.3 Delta): ~15% return. Not enough alpha to justify the capped upside compared to holding the stock.