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Jan 10th 2006 Google, (GOOG) Bull spread expiring with max profits on this spread. I hoped you own the Jan $390 call options free and clear. We have been writing the spreads using the Jan $430 call to generate premium income. The spreads has been very profitable, writing spread 3 to 4 times earning $300-500 each time. The cost of this spread was $1300, and yet it has generated over $4000 in profits. If you own the Jan $390 calls free and clear, the hypothetical profit number of $75 has been reached for maximum profits. Jan 2,2006 Google (GOOG) total cost on bull spread $1300. Explained Google positions in email alert. Should have closed out spread and taken profits of $1300-1800 yesterday. If you are still long Google's Jan $390 calls and didn't buy back the Jan $430 calls you wrote for premium when the Google's stock price reached low last week, you can continue to hold. If you own the Jan $390 calls free and clear, you could sell them for a nice profit as Google's stock price moves higher with Google uphoria. Google (GOOG) total cost $880 on bear spread calendar spread. Hold no action Google (GOOG) new bear spread cost $ 1840. Opposite of the bull spread as explained in the updates last week. Buy Mar 420 puts at $33.00 Sell March $390 puts for $15.00 Today's price is cheaper. Mar 420 puts for $25 and March $390 puts are $11.00 Buy offsetting position of Mar $390 puts for $1.00 and hold the Mar $420 puts until Google's price drops below $409. Google (GOOG) total cost on bull spread $1300. Explained Google's positions in email alert. Should have closed out spread and taken profits of $1300-1800 yesterday. Buy long Jan $390 calls, write Jan $430 calls, close position, net profit $1300-$1800. Google (GOOG) total cost $930 on bear spread calendar spread. Hold no action yet. Buy long Jan $370 puts for $41, 2007; write Jun $370 2006 puts for $32.00. Today you could buy offsetting Jun $370 puts for $17, capturing $15 of premium. The current price of Jan $370 puts '07 are at $32, droping only 10 points, compared to the drop of 15 points for the Jun '07 370 puts. Google new target price was set at $600. Continue to hold the Jan '07 $370 puts to write calendar spreads. Google (GOOG) new bear spread cost $ 1840. Opposite of the bull spread as explained in the updates last week. Buy Mar 420 puts at $33.00 Sell March $390 puts for $15.00 Today's price is cheaper. Mar 420 puts for $25 and March $390 puts are $11.00
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