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) September 2021 $2,745-$2,750 in-the-money vertical BULL call spread at $4.98
Closing Trade – NOT FOR NEW SUBSCRIBERS
9-16-2021
expiration date: September 17, 2021
Portfolio weighting: 10%
Number of Contracts = 22 contracts
This was a short-term bet that Alphabet (GOOGL) would stay above $2,750 by Sept 17th expiration. I executed this trade on Aug 30 and it has held up quite well throughout the “inflation” scares and any sort of negative news. This stock is the best tech stock right now and certainly the best of the vaunted FAANG group.
I am going ahead and closing it out and leaving you a few pennies to get the order done, if you are hellbent on collecting the full $5, then the call spread is highly likely to end tomorrow’s expiration above $2,750.
We have taken in a raft of new subscribers in the last week and this trade is not for you unless you received the Aug 30th GOOGL opening alert.
I have taken profits on GOOGL already several times this year and I view it as a conviction buy on any dip in short-term trading world, but it’s also a high-quality stock to just buy and hold long-term. It’s really an all-weather stock.
If you don’t do options, you should be holding the stock and never sell it.
Here are the specific trades you need to exit this position:
Sell to Close 22 Sept 2021 (GOOGL) $2,745 calls at……..……$114.75
Buy to Close 22 Sept 2021 (GOOGL) $2,750 calls at………….$109.77
Net Proceeds:……………………...................…….………..…..….....$4.98
Profit: $4.98 - $4.45 = $0.53
(22 X 100 X $0.53) = $1,166 or 11.91%
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.
