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How Subscribers Quintupled Their Money on Alphabet Stock
Schaeffers Investment Research· 2025-11-25 18:10
Core Insights - The article discusses an options trading strategy that mitigates the impact of time decay, specifically through the use of a vertical debit spread [2][3]. Group 1: Options Trading Strategy - A vertical debit spread involves buying an at-the-money (ATM) option and selling an out-of-the-money (OTM) option within the same expiration month, allowing the credit from the OTM option to offset the cost of the ATM option [3]. - This strategy limits risk to the difference between the costs of the extended leg and the income from the short leg, making it a safer approach compared to other options trading strategies [3]. Group 2: Trade Performance - Subscribers to the Vertical Options Trader service achieved a 454% profit on a recommended trade involving Alphabet Class A (GOOGL) options, specifically a November 21, 275-300-strike vertical debit call spread [2][5]. - The trade was initiated when Alphabet stock was priced at $251, and after some consolidation, the stock rose to $291.74, allowing for a partial gain of 300% on the first half of the position [4][5]. - Following a significant market event related to Warren Buffett's investment, the stock price exceeded $300, leading to the closure of the final half of the position at $299.34, resulting in an overall profit of 454% for subscribers [5].