Alphabet is winning the AI revolution. Here's how Mike Khouw is trading it

watch nowAlphabet (aka "Google") is clearly firing on all cylinders, more cylinders perhaps than the Street even realized it had. The quarter was frankly a blowout. Surging cloud revenue and raised capital expenditure (capex) guidance demonstrate that the company's enormous investments are potentially paying off more quickly than many—perhaps even many within the company—had anticipated.The takeaway could not have been clearer: Alphabet isn't just surviving the AI revolution — in many ways, it's leading it.Why? Because while their investments are enormous, this company is making money now in this space. Cloud and artificial intelligence were the undisputed stars of the quarter. Google Cloud continues to grow rapidly, capturing enterprise workloads as businesses accelerate their AI buildouts. Demand for Gemini-powered services and AI infrastructure is outpacing even the most optimistic forecasts. In a sign of supreme confidence, management raised full-year capex guidance to as much as $190 billion — a jaw-dropping figure that signals Alphabet is playing for generational dominance, not quarterly optics.Stock Chart IconStock chart iconAlphabet, YTDSo how do you make money on it now using options?THE TRADE:• Buy August 400-Strike calls• Sell June 350/420 Strangle• Level of difficulty: AdvancedI favor buying the August $400 strike calls which capture the