I guess GOOGL was a good sale!
For the LTP, let's:
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- Sell 6 GOOGL Dec 2028 $300 puts for $53 ($31,800)
- Buy 15 GOOGL Dec 2028 $250 calls for $96 ($144,000)
- Sell 12 GOOGL Dec 2028 $350 calls for $56 ($67,200)
- Sell 5 GOOGL June $300 calls for $13.65 ($6,825)
- Sell 5 GOOGL June $280 puts for $14.75 ($7,375)
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That's net $30,800 on the $150,000 spread with $119,200 (387%) upside potential at $350 and we collected $14,200 selling 1 quarter out of 10 we have to sell so another potential $142,000 (460%) in premium sales and this is ONE trade we're adding using ONE allocation block of 20 we have to sell.
What's my worst case? We end up owning 1,100 shares of GOOGL at $300 or less ($330,000) but we'll roll lower and sell calls or whatever so I doubt we'll net more than $250,000/2 for margin is $125,000 - it's acceptable.
Meanwhile, we'll get ALL of our cash outlay back after 2 more premium sales and of GOOGL stays in a range between $250 and $350 - this will be a nice, boring way to turn $30,800 into over $250,000.
Now THIS is a Top Trade!
Also, very important note - we didn't need to GUESS the bottom in GOOGL - we just waited to see what kind of interest there was at $280 and it's a lot and that was a 20% pullback from $350 so it all seems to work out.
When we're constructing spreads like this - there's no need to call a perfect bottom - people are willing to give us STUPID amounts for premium ($14,200 for 79 days!) once we establish our long position.
🚢 Alphabet checks every box we want for a big LTP Top Trade here, and TurboQuant just sharpened the story.
