Tech Alert - (GOOGL) October 26, 2023

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 2023 $110-$115 in-the-money vertical BULL CALL spread at $4.30

Opening Trade

10-26-2023

expiration date: November 17, 2023

Portfolio weighting: 10%

Number of Contracts = 23 contracts

This is a 22-day mildly bullish trade that GOOGL’s underlying stocks will stay above $115 by November expiration.

Google (GOOGL) dropped on the earnings report because the cloud numbers showed another slowing.

I believe there is a lot of bad news already baked into GOOGL right now.

Macro has been highly negative lately and the internals are weakening showing minimal growth next year. This is why the Nasdaq index has been performing weakly lately.

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 believe the risk/reward in a short-term GOOGL call spread is worth it.

It’s a cash cow company and will find a bid.

Don’t pay more than $4.40.

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

Buy 23 November 2023 (GOOGL) $110 calls at………….….……$14.35

Sell short 23 November 2023 (GOOGL) $115 calls at……….….$10.05

Net Cost:……………………..…….………..……................................$4.30

Potential Profit: $5 - $4.30 = $.70

(23 X 100 X $.70) = $1,610 or 16.28% in 22 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.

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