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) March 2024 $132-$137 in-the-money vertical BULL CALL spread at $4.25
Opening Trade
2-22-2024
expiration date: March 15, 2024
Portfolio weighting: 10%
Number of Contracts = 23 contracts
Alphabet (GOOGL) opened 2024 hot and short-term and mid-term indicators look healthy for GOOGL.
After the monster beat by Nvidia, we are adding more tech in the form of Google.
This is a trade that GOOGL will end over $137 by March 15th.
Tech had a great year last year and so it’s quite healthy for big tech to experience a modest pullback. The tailwind of the Fed pivot will be strong in 2024 and readers should ride on the coattails of it to profit.
Don’t pay more than $4.30.
Here are the specific trades you need to execute this position:
Buy to Open 23 March 2024 (GOOGL) $132 calls at………….………$12.40
Sell to short 23 March 2024 (GOOGL) $137 calls at………...........….$8.15
Net Cost:……………………................................…….………..…....….....$4.25
Potential Profit: $5 - $4.25 = $.75
(23 X 100 X $.75) = $1,725 or 17.65% in 22 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.
