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Alphabet options target 13% jump after Fed pause

By Drooid · Oct 28, 2026 · How we work

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Summary

Options traders bought 2,271 Alphabet call contracts targeting a 13% rise to $365.
Cboe LiveVol data show the market pricing a roughly 6% swing for Alphabet and about 5.1% swing for Microsoft.
Alphabet’s five-year credit default swaps hit a record, up 16% this month.
The Federal Reserve left its benchmark rate at 3.75%-4.00% in a 10-2 vote.

History

When Lehman Brothers filed for bankruptcy on September 15 2008, the U.S. financial system plunged, prompting emergency measures by the Federal Reserve and Treasury to stabilize markets. The Fed slashed the benchmark rate by 0.5 percentage points to 0 % and launched $700 billion of quantitative easing through the Term Auction Facility and asset purchases. Today's options surge on Alphabet and Microsoft mirrors that 2008 volatility, as Cboe Global Markets reports 6 % swings and investors hedge against Fed policy. The episode underscores how central-bank decisions can instantly reshape tech-stock pricing, prompting regulators to monitor credit-default swaps and market liquidity.

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When Lehman Brothers filed for bankruptcy on September 15 2008, the U.S. financial system plunged, prompting emergency measures by the Federal Reserve and Treasury to stabilize markets. The Fed slashed the benchmark rate by 0.5 percentage points to 0 % and launched $700 billion of quantitative easing through the Term Auction Facility and asset purchases. Today's options surge on Alphabet and Microsoft mirrors that 2008 volatility, as Cboe Global Markets reports 6 % swings and investors hedge against Fed policy. The episode underscores how central-bank decisions can instantly reshape tech-stock pricing, prompting regulators to monitor credit-default swaps and market liquidity.

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