This week began on a somewhat negative note for the stock. But all eyes are now on earnings to see how the markets will end. There is a long trail of mega-cap with reporting this week, and mathematically they have the weight to sway wall street in both directions.
The event last night alphabet Inc (Nasdaq:googl at) reported earnings. Shares jumped on the Title, but faded in after-hours trading. While investors have not yet decided what to do with this great company, they celebrate others who are rallying thus raising the indicators above. This could shake the stock markets bulls make up. In the long term this goes higher!
Management reported a beat on top and bottom line. So, at first glance, the googl stock should rally. But there were concerns about the flow of traffic. Investors ignored all the good news first focus on some stock positions.
The positive side of this is that during the time when all the experts are concerned about the privacy issues, there was almost no mention of its implementation from Facebook, Inc. (Code Nasdaq:FB) debacle. So, just complaints of a transient increase in transportation costs is a win for googl Bulls. And even then, the management has confirmed that these levels will subside in the coming quarters.
Fundamentally, the googl stock blowing up. Its price is within its competitors and it is a giant cash cow. In addition, they have several different platforms that have not yet been monetized, not to mention their forays into Autonomous driving. And therein lies a huge growth potential.
These are nervous times, so the bet is purely on the up “hopium” is risky. We have many titles looming, spanning from geopolitical risks, the global tariff wars with China, Europe and Russia. So there is cause for short term concern. At the risk of $1,070 per share without protection scared.
So until the air clears, I prefer to use the savings of my pocket risk while trading today, the stock script. Technically, Google has shed a lot of foam from the January highs. Thanks to the February correction of own capital reduction in two times decreased by 15%. He recovered from his original route at the end of February, and he was in the process of doing it again goes in the profit.
What happens here will largely depend on sentiment on wall Street. Meaning, if traders are becoming less worried about White house tweets, googl, the bulls will have the courage to buy the stock above.
But in any case they do not, my bet today is that the last support will last until 2018, not anticipating a rally. There are several levels that would be great entry points for googl shares under the current macroeconomic environment.
So, I sell risk in relation to drugim unrealistic fears. This will generate income without any cash risk and leave a lot of room for error.
Trade: sell in Aug googl $800 to put and collect $5 per contract, to open. I have 85% of theoretical certainty, so I have to preserve the gains. Otherwise, I will accumulate losses, below $795.
Selling naked puts is complicated, especially in this unstable Heading periods. Those who want to mitigate this risk is to sell spreads.
Alternative trade: sell in Aug googl $840/$830 bull put spread where I have the same chances of winning. The yield spread is 10% on risk.
There are no guarantees when investing in stocks, so never risk more than you can afford to lose.
Find out how to generate income from options. Nicolas Chahine-managing Director SellSpreads.com. At the time of this writing, he has not held positions in any of the above securities. You can follow him as @racernic on Twitter and stocktwits.