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) February 2022 $2,200- $2,300 in-the-money vertical BULL CALL spread at $84.00
Opening Trade
1-25-2022
expiration date: February 18, 2022
Portfolio weighting: 10%
Number of Contracts = 1 contract
I love Google for the long term and along with Microsoft, they comprise the gold standard for technology stocks and a great place to hide during the volatility.
We have just seen the market perform another perfect 700-point swan dive.
Although I expect this market selloff to continue for weeks, if not months, the biggest declines are behind us. When markets bottom out, the big money will pour back into the best quality names, especially Alphabet.
I am therefore buying the Alphabet (GOOGL) February 2022 $2,200-$2,300 in-the-money vertical Bull Call spread
Here are the specific trades you need to execute this position:
Buy 1 February 2022 (GOOGL) $2,200 calls at………….………$388.00
Sell short 1 February 2022 (GOOGL) $2,300 calls at………….$304.00
Net Cost:…………..........................…………..…….………...…….....$84.00
Potential Profit: $100 - $84 = $16
(1 X 100 X $16) = $1,600 or 19.05% in 24 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.
