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.
Trade Alert - (GOOGL) – EXPIRATION AT MAX PROFIT
EXPIRATION of the Alphabet Inc. (GOOGL) December 2023 $110-$120 in-the-money vertical Bull Call spread at $10.00 or best
Closing Trade
12-15-2023
expiration date: December 15, 2023
Portfolio weighting: 10%
Number of Contracts = 11 contracts
With this trade, we really nailed the ballistic melt-up in falling interest rate plays since October 26.
Just to be clear, this position does not expire until after the close today, December 15. I’m sending this expiration alert out now, so I don’t overwhelm you with too many expirations at max profit in one day.
With (GOOGL) stock now a reasonable $11.74, or 9.78% above the nearest $120 strike price it’s safe to call this one a “win” with only hours left until expiration
Given that the long-term top in interest rates and the bottom in fixed income prices are in, I am looking for leveraged plays on Artificial Intelligence, for which I expect $1 trillion in capital investment in 2024.
As a result, you get to take home $1,100 or 11.11% in 23 trading days. Well done and on to the next trade.
Alphabet’s accounts for 92% of the online search industry and a majority of online advertising. It has been a major investor in AI for a decade. Now is the time to reap the dividends. Think of it as 1995 all over again, when cheap Windows, inexpensive PCs, and the Internet all hit at the same time, generating a 10X move in stock prices.
Alphabet is the perfect play on a recovering global economy, which I expect.
This was a bet that Alphabet would not fall below $120 by the December 15 option expiration.
For more about (GOOGL), please click here for their website.
Here is the specific accounting you need to close this position:
EXPIRATION of 11 December 2023 (GOOGL) $110 calls at……….......$21.74
EXPIRATION Sell short 11 December 2023 (GOOGL) $120 calls at....$11.74
Net Proceeds:……………………..….....................….………..………….….....$10.00
Profit: $10.00 - $9.00 = $1.00
(11 X 100 X $1.00) = $1,100 or 11.11% in 23 trading days.
