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) – TAKE PROFITS
SELL Alphabet Inc. (GOOGL) February 2022 $2,200- $2,300 in-the-money vertical BULL CALL spread at $99.70
Closing Trade
2-2-2022
expiration date: February 18, 2022
Portfolio weighting: 10%
Number of Contracts = 1 contract
Google adds more momentum to the tech reversal as they announce strong earnings making our trade profitable.
I bought the Alphabet (GOOGL) February 2022 $2,200-$2,300 in-the-money vertical Bull Call spread, and shares are up over 7% as Google expanded revenue by 32% year over year.
This stock should be the cornerstone of any tech portfolio and I will be back in here on the dip.
Here are the specific trades you need to exit this position:
Sell to Close 1 February 2022 (GOOGL) $2,200 call at….………$715.00
Buy to Close 1 February 2022 (GOOGL) $2,300 call at………….$615.30
Net Proceeds:……………………..…….………..….....................…......$99.70
Profit: $99.70 – $84 = $15.70
(1 X 100 X $15.70) = $1,570 or 18.70%
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.
