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 2024 $145-$150 in-the-money vertical BULL CALL spread at $4.00
Opening Trade
8-9-2024
expiration date: September 20, 2024
Portfolio weighting: 10%
Number of Contracts = 25 contracts
Alphabet (GOOGL) has absorbed a great deal of bad news lately and the stock has retraced greatly from $190 per share to $160 per share today.
This is a trade that GOOGL will stay above $150 in the next 43 days.
After the great unwinding of the Japanese yen carry trade, this could be a good time to step back into the tech market with some of the beaten-down names.
GOOGL is still an AI stock and has a high-quality balance sheet that will get it through some lean times.
I do believe the Fed Funds rate starts to reprice less interest rate cuts as the data shows that the US economy is still growing.
Don’t pay more than $4.12.
Here are the specific trades you need to execute this position:
Buy to Open 25 September 2024 (GOOGL) $145 calls at………….………$17.10
Sell to short 25 September 2024 (GOOGL) 150 calls at…………............$13.10
Net Cost:……………………..…….………..……............................................$4.00
Potential Profit: $5 - $4 = $1
(25 X 100 X $1) = $2,500 or 25.00% in 43 days
If you are uncertain about 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.
