Tech Alert - (GOOGL) November 6, 2023 - TAKE PROFITS

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 TAKE PROFITS Alphabet Inc. (GOOGL) November 2023 $110-$115 in-the-money vertical BULL CALL spread at $4.97

Closing Trade

11-6-2023

expiration date: November 17, 2023

Portfolio weighting: 10%

Number of Contracts = 23 contracts

I bought the dip in GOOGL after a poor forecast for the cloud computing business and the underlying stock has been off to the races since then.

I am now taking profits in the trade.

I highly anticipate more than a few big tech companies to guide poorly as management sees a tougher 2024.

It’s a poor idea to chase stocks higher and better to tactically play tech stocks by buying good names on the dip.

I believed the risk/reward in a short-term GOOGL call spread was worth it and now I am happily taking profits.

Here are the specific trades you need to exit this position:

Sell to Close 23 November 2023 (GOOGL) $110 calls at………….………$19.75

Buy to Close 23 November 2023 (GOOGL) $115 calls at………........….$14.78

Net Proceeds:……………………..................................…….………..…….....$4.97

Profit: $4.97 - $4.30 = $.67

(23 X 100 X $.67) = $1,541 or 15.58%

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.

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