When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Tech Alert - Alphabet Inc. (GOOGL) - BUY
BUY Alphabet Inc. (GOOGL) September 2021 $2,745-$2,750 in-the-money vertical BULL call spread at $4.45
Opening Trade
8-30-2021
expiration date: September 17, 2021
Portfolio weighting: 10%
Number of Contracts = 22 contracts
This is a short-term bet that Alphabet (GOOGL) will stay above $2,750 by Sept 17th expiration.
After the Fed Chair Jerome Powell acknowledged that transitory means a long time, I am inclined to get into a tech safety trade.
I executed an FB call spread trade lately that is doing very well.
GOOGL has to be the best FAANG stock right now and it is firing on all cylinders.
The company generated strong top and bottom-line growth, even after adjusting for unrealized investment gains.
Like I thought, GOOGL has been one of the tech’s best performers in 2021 and it should finish the year strongly especially if fears of delta variant aren’t as bad as priced into the markets.
If you don’t do options, you should be holding the stock and never sell it.
Here are the specific trades you need to execute this position:
Buy 22 September 2021 (GOOGL) $2,745 calls at………….………$166.05
Sell short 22 September 2021 (GOOGL) $2,750 calls at………….$161.60
Net Cost:……………………..…….................................………..…….....$4.45
Potential Profit: $5 - $4.45 = $0.55
(22 X 100 X $0.55) = $1,210 or 12.36% in 18 days
If you are uncertain on how to execute an options spread, please watch my training video by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
