Attention: New CPTI March Position
With the lack of premium in the market, I began to look in unusual places for a safe, but potentially profitable opportunities -- and I found one in an unlikely place -- Google. OK, you can stop laughing. I'm serious. Look at the chart. Check out the support and resistance levels. I believe we can construct an Iron Condor that will corral this wild child of a stock. The reaction to Google's positive earnings announcement is over. If there were going to be further announcements from the company, they likely would have happened by now.
Willie Sutton was asked why he robbed banks. He replied, "Beacuse that's where the money is." If Willie was looking for premium, he would have gone to Google too. With Google (GOOG) trading at $196.03, let's:
Sell 10 GOOG March 160 puts
Sell 10 GOOG March 240 calls
Total credit and profit potential of about $1.05 ($1,050). We've created a maximum profit range of $160 to $240. The maintenance is $10,000. Remember, this is a "hypothetical" position -- and we may be going for a "hypothetical" wild ride.