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) November 2021 $2,600-$2,620 in-the-money vertical BULL call spread at $16.45
Opening Trade
10-26-2021
expiration date: November 19, 2021
Portfolio weighting: 10%
Number of Contracts = 6 contracts
This is a short-term bet that Alphabet (GOOGL) will stay above $2,620 by November 19th expiration.
Facebook (FB) and SNAP (SNAP) have significantly lowered the bar for ad tech and I’m quite comfortable going into ad tech before earnings.
GOOGL shares have weakened somewhat leading up to this event and I will put my faith in its stellar business with a deep-in-the money call spread.
I am bullish tech going into the debt ceiling event of December.
Like I thought, GOOGL has been one of the tech’s best performers in 2021 and it should finish the year strongly.
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 6 November 2021 (GOOGL) $2,600 calls at………….………$202.00
Sell short 6 November 2021 (GOOGL) $2,620 calls at…….…….$185.55
Net Cost:………………..........................……..…….………..…….........$16.45
Potential Profit: $20 - $16.45 = $3.55
(6 X 100 X $3.55) = $2,130 or 21.58% 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.
