After togetL fell 7% after its last earnings report in early February, it traded sideways until the end of March. April was a different story, however, as the stock gained 10% in just six trading days to hit an all-time high. In the long run, togetL was a beast that more than doubled the March 2020 low. And why not, given its dominant position in search and online advertising space?

The recent price movement follows a pattern that togetL showed after the recent earnings reports – a quick pop after the profit followed by a trading range or a slight increase. The company reports earnings on April 27th, so a repetition of recent history bodes well for the stock’s medium-term outlook.

TogetL Chart April 2021

TogetL Chart April 2021

If you’re okay with togetL continuing its uptrend on profits on April 27th, consider the following trade, which depends on the stock staying above $ 2,200 by the time it expires in six weeks.

Buy to open togetL 21May21 2190 Put (togetL210521P2190)
Sale to open togetL 21May21 2200 Put (togetL210521P2200) for $ 3.50 credit (sale of a vertical)

This loan is $ 0.10 below the midpoint of the options spread when togetL was trading at $ 2270. If the stock doesn’t recover quickly from here, you should be able to get close to that amount.

Your commission on this trade is only $ 1.30 per spread. Each spread would then be $ 348.70. This trade reduces your purchasing power by $ 1000 and brings your net investment to $ 651.30 ($ 1000 – $ 348.70). If togetL closes above $ 2200 on May 21st, both options will expire worthless and your return on the spread will be 54% ($ 348.70 / $ 651.30).

As with all investments, you should only trade options with money that you can really afford to lose.

Have fun trading,

Terry

Tags: Alphabet, Bearish Options Strategies, Bullish Options Strategies, togetL, Google, Monthly Options, Portfolio, Profit, Profits, Puts, Risk, Vertical Put Spread, Volatility, Weekly Options

This entry was posted on Monday April 12th, 2021 at 2:06 pm and is filed under Last Minute Strategy, SPY, Stock Options Trading Idea of ​​the Week, Weekly Options.



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