Trade Alert - (GOOGL) February 10, 2022

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) March 2022 $2,490- $2,590 in-the-money vertical BULL CALL spread at $80.00

Opening Trade

2-10-2022

expiration date: March 18, 2022

Portfolio weighting: 10%

Number of Contracts = 1 contract

Google being down 2% today means there’s a discount today on Google shares.

I love Google (GOOGL) for the long term and along with Microsoft (MSFT), they comprise the gold standard for technology stocks and a great place to allocate capital when push comes to shove.

The last trade I executed with Google was a bull call spread that I caught perfectly after a 700-point swan dive to great effect.

Google has somewhat retraced from the $3,000 level and I am somewhat surprised by the resilience of the Nasdaq when it printed the worst inflation number in 40 years.

If this doesn’t tank the market, then whatever comes next will seem like a piece of cake. Even if there is a small squall coming, GOOGL is the place to hide out.

So I will take that cue to get back into the most desirable tech names with robust balance sheets and that is Google. I also like Amazon at these levels as well.

I do expect a prolonged period of volatility as the Fed tries to tame inflation, so I expect range-bound price action in the best of breed and for the marginal tech, they should be avoided.

I am therefore buying the Alphabet (GOOGL) March 2022 $2,490-$2,590 in-the-money vertical Bull Call spread

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

Buy 1 March 2022 (GOOGL) $2,490 calls at…….…….………$312.00

Sell short 1 March 2022 (GOOGL) $2,590 calls at………….$232.00

Net Cost:………………….....................…..…….………..…….....$80.00

Potential Profit: $100 - $80 = $20

(1 X 100 X $20) = $2,000 or 25% in 37 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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