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) – BUY
BUY the Alphabet Inc. (GOOGL) December 2023 $110-$120 in-the-money vertical Bull Call spread at $9.00 or best
Opening Trade
11-13-2023
expiration date: December 15, 2023
Portfolio weighting: 10%
Number of Contracts = 11 contracts
If you don’t do options, buy the stock. My target for (GOOGL) in 2024 is $35, up 51.50%.
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.
Alphabet 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.
I am therefore buying the Alphabet Inc. (GOOGL) December 2023 $110-$120 in-the-money vertical Bull Call spread at $9.00 or best.
Don’t pay more than $9.40 or you’ll be chasing.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done cancel it and enter a new order 10 cents higher.
This is a bet that Alphabet will not fall below $120 by the December 15 option expiration day in 23 trading days. For more about (GOOGL) please click here for their website at https://en.wikipedia.org/wiki/Alphabet
Here are the specific trades you need to execute this position:
Buy 11 December 2023 (GOOGL) $15 calls at………….………$23.00
Sell short 11 December 2023 (GOOGL) $16 calls at………....$14.00
Net Cost:……………………..…….………..…………...............….....$9.00
Potential Profit: $10.00 - $9.00 = $1.00
(11 X 100 X $1.00) = $1,100 or 11.11% in 23 trading days.
If you are uncertain about 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.
