Trades

Google Earnings for April 2012

I don’t know about you but I don’t have a clue which way GOOG will move after earnings.  I do have some historical facts that may or may not help.  Never has GOOG missed two earnings in a row.  Less pay per  clicks have been registered this quarter and China growth is all but gone.  I still have clients that want to be in GOOG but do not like to take the risk associated with owning a “high flier”, volatile stock.  Here is how I played the position

I bought the stock @ $633.90 a share yesterday.  Where you own a volatile stock like GOOG it could easily loss $100 a share before the market even opens tomorrow.  I have a lot of risk on 1000 shares of stock so I look to find a way to lower the risk. 
I bought to open a May 12 $635 long put for $26.50.
Stock 633.90 + 26.50 long put price = $660.40 total cost basis BUT
I have the right to sell GOOG at $635
NEW risk is 660.40 – 635 = $25.40 per share.
That sure beats hundreds of dollars and I now have a defined risk in my trade.  $25.40 / 660.40 = 3.8% of my total invested capital.  I love less than 4% risk in my trade of 660K !!!
I am also trying to control greed so why not lower my risk even more??? If I sold GOOG @ 675 I would make some good returns on a stock bought at almost 634.  I sold a short call for $10.50 that would cap my profits yet lower my risk even more. 
New Risk of $25.40 – 10.50 = $14.90 is the most I could lose on this trade out to the third Friday of May 2012. 14.90 – 650 total cost basis = 2.3% overall risk in the trade. My clients and I can liv
e with that and this is the way money managers should be looking at your trades.
What is the most I can make?  Well by selling the short call and capping if GOOG goes over 675 by that third Friday in May I have to sell at %675.
$675 – Cost of stock $633.90 – $25.40 for the putt + $10.50 short call = $26.20 profit or a 4% return in 9 weeks and there are things I can do to adjust the trade if the stocks moves up.  In a modest best guess it will turn into a 10% return or over $50 per share if GOOG trades over $700 in May !!!
GIVE ME A CALL TODAY !!! 888-287-1030

Related posts

Investor, Trader or Gambler – Which are you?

admin

The “Knee Jerk” Reaction in Trading

admin

How to know when your “head” is screwing up your trades!!!

admin

Covered call or protective put for protection?

admin

I want to catch the big run up in our stock market!!!

admin

Does your money manager protect your stocks (GOOG, AAPL or ISRG) in volatility???

admin

21 comments

translation company April 25, 2012 at 7:02 pm

I think really regarding this and furthermore really like mastering on this useful aspect. In circumstances where guaranteeing, since get abilities, what inner most thoughts recovery the web page that contains more significantly specifics? This can be very used for people.

Reply
ergonomic office May 2, 2012 at 10:44 am

So beautiful article. I visit this site. It gives me lots of pleasure and interest. It’s a most important post. Please every one visit this site quickly. Thanks.

Reply
Jeans Australia May 3, 2012 at 7:13 am

I am really comply with this article. It is a valuable and charming article for all. Everyone please visit this site and discus about this post each other.

Reply
Gaming Computer Cases May 5, 2012 at 5:18 pm

So many many thanks for this article. I know lot of things about this post. Its so popular. I like this.

Reply
honda May 14, 2012 at 6:40 am

I think, it’s a helpful topic. I like this topic. I want know some helpful things from this side. It fresh my mind and experience. So lots of thanks for sharing this information with me.

Reply
Computer Keyboards May 19, 2012 at 10:35 am

Excellent post. It is one of the best post from other. It is a useful and charming post. I want to sharing this topic with some of my close friends. So thanks this post.
Computer Keyboards

Reply
SEO Services June 16, 2012 at 9:41 am

I am agree to visit this site and read this post.Because this post has many important things. I am really happy for knowing this great post.

SEO Services

Reply
ghd straightener July 16, 2012 at 6:47 am

I admire The Valuable information you offer in your articles.

Reply
Bankruptcy lawyers January 17, 2013 at 12:34 pm

I can see that you are an expert in this field! I am launching a website soon, and this information is very useful for me. Thanks for all your help and wishing you all the success in your business…Orange County lawyer bankruptcy

Reply
free business directory February 28, 2013 at 7:12 am

grate thanks for sharing with us.

Reply
Buy Google Plus 1 March 1, 2013 at 12:25 pm

Thanks for your marvelous posting! I actually enjoyed reading it, you will be a great author.I will ensure that I bookmark your blog and will come back in the foreseeable future. I want to encourage that you continue your great job, have a nice weekend!think you’ve made some truly interesting points

Reply
Magento Consulting Services March 8, 2013 at 10:45 am

Definitely right place to discuss this topic here, I feel strongly about it and love reading more on this topic. if possible, as you gain knowledge, would you mind updating your blog with extra information? It is extremely helpful for me.

Reply
help with sports dissertation March 20, 2013 at 6:53 am

Your informational post is helpful one for lots of internet users, Wish you are okay with me making a comment. I actually like this site. Do you blog post to it often,

Reply
mba dissertation help March 27, 2013 at 10:03 am

I am look ahead to analysis your piece of writing Google Earnings for April 2012 and study extra posts shortly.

Reply
bookmark submitter April 17, 2013 at 12:08 pm

I can see that you are a specialist in this field! I am launching a website almost immediately and this information is extremely helpful for me. Appreciation for all your assist and wishing you all the achievement in your big business.

Reply
emailing May 4, 2013 at 7:27 am

Really your post is really very good and I appreciate it.I would like to appreciate the choice of theme that you have chosen for your blog, it looks perfectly wonderful. Now, coming on today’s post I must say that you have explained the subject in a concise manner that makes it easily understandable. Thanks for this information.

Reply
Alexandria POS Software May 6, 2013 at 5:15 am

Google the name is enough to know what it is either a technical or a non-technical person everyone is just using the features of Google the big reason is that this is user friendly and this is the reason Google is always in profit.

Reply
what is white hat seo June 7, 2013 at 3:30 pm

This is a topic that’s close to my heart… Cheers! Where are your contact details though?

Reply
essay writing services July 26, 2013 at 9:51 am

I think investing will be worth-it if you have a knowledge on stocks. Otherwise, you can get financial advise so that you won’t feel like you lose your money when the stocks go down or something. It is better to not invest all of your money and test the water first before taking a swim.

Reply
Smtp Server Provider October 5, 2013 at 10:18 am

Its a pretty good post about the Google Earnings I just stumbled upon your blog and wanted to say that I have really enjoyed visiting your blog posts. I would like to thank you for sharing your thoughts and time into the stuff you post!

Reply
zemkarlos December 20, 2013 at 2:12 pm

Your website came up in my search and I’m taken by what you have composed on this topic. I am presently diversifying my research and thus cannot contribute further, even so. Just Now love it and thanks for granting my remark. Great job. Roof repair Specialist

Reply

Leave a Comment

4 × five =