GOOGL reaching $400 by summer 2027 yields ~50% return on LEAP options bought at $70.
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If we believe that Google's stock price will reach $400, it won't be There is a lot of profit Which can be achieved here. However, the caveats are I think Google It can reach up to 400 Dollars per share before time Long from December 2027.
Yes If the price reaches 400 Dollars in the summer of 2027, It will have value within The money (in-the-money) is worth 80 Dollars, right? The price will be $400. And if the execution price $320, you're a winner For $80.
permission Its value will be 80 At least one dollar, Because it will be in the summer Or June, there will still be 5 Months until December, so He will keep a lot of Time value (theta).
from It is very difficult to determine The magnitude of "theta" or value The time period that will remain The option is available In advance, but I say If there are 5 months left, we can Make a comparison now.
The first step is calculation The exit price we will receive On him in the summer when Google's stock reaches 400 dollar.
I will appreciate That's basically it. I'll show you. Firstly, The first step is Determining the value within the money. That's 80 Dollars, right? So, $80 will be Value within money.
Do Is this understood? We know We buy it for 70. It will cost $80. at least. But, how More than $80? Why don't we just look at He currently has 5 options remaining. months up to date Finished?
So, 5 months That's roughly equivalent to 5 in 30. That is, 150 days.
Let's choose a month January. Now we can Seeing an option is like You know, let's choose An option within the money. We can see that the price is 320 It will be inside the money.
He has 5 months left. This option is within the range Profit by 15, but The value of the option is 36.
Therefore, If we do the calculations, Isn't that so? 335 minus 320 It equals 15, but it is traded At a price of 36. So, the difference There are about 20 Dollars. Thus, it contains This option is based on value Timeframe of $20 .
Good. So, about 5 Months equivalent to bonus Worth $20 This execution price, isn't it? like that? I'm just doing By some accounts approximate method Different and strange, because I I believe that looking at Things and their calculations And appreciating it is a means Always learning.
Good? Sometimes in my community, I offer some strange explanations. And I offer explanations Strange and different because I I think this helps People need to understand things.
Good? For me, I like looking at the edges To be able to understand what might It collapses, and what might go Very well, and what It might go badly Extremely. So, I just want Performing these calculations The approximation to be able to Understanding the profits of the "Lip" option In a different way.
permission, Yes, 320, isn't it? This equals 36, but it's in Profit range of 15, So it is actually It represents approximately 20 to 21 Dollars as a time value For a 5-month period.
Good? Returning to Our first example, if We have $80. Okay, let's go back here. Therefore, if the value This is the option we pay for It costs $70. It will become $400.
this This means it will be worth $80 in the range Profit, in addition Time value of no less than 20 dollars, making The option is worth $100 At least, and perhaps more .
Good? This is good Very much so, because it's from 70 dollars to more A little over $100, This is the value that will reach She has the choice if it arrives Google's stock to 400, okay This means approximately 50%.
I find that very appealing. Because from now until June of summer, there are 9 Months.
So, 9 months At 50%, that's exactly it Within the range that I consider Excellent. Consider this Expansion by 50% in 9 Most popular peak level, best From Warren Buffett, And literally better than any An investor makes a bet and wins Luck.
This is literally the peak What I consider amazing. Isn't that so? So, this That's exactly what I'm talking about. About him. 9 months at 50% It would be an amazing goal For me.
It has achieved That many, many times In different ways, and not only Through the "Lip" options. I have tried strategies Different, but generally When I get this The type of return, I am I am extremely happy.
I had a choice challenge. "Leipzig" in January, and January to July, it was A challenge for a year, I finished it in July Because I reached 50 A thousand, and when I became 100,000 in July, held I met and said: "Oh Guys, I know we're finishing It's too early to tell, but Are you upset because we Should we end this early?
We have converted a portfolio worth 50,000 to 100,000 So we're done "Almost here."
Then I said, " Are you ready? For individual sessions? Before Many people are offering Because they were happy extremely positive results I achieved it. Good? Therefore, They were extremely happy.
They said, "Yes, definitely. We can end this. It's too early now. I Ready to move forward And do some training "Individual." So, yes.
I mean, to be perfectly honest, it was It's amazing. He was Amazing to them. It was amazing to me . It was a profitable situation For both sides. So, perhaps We will repeat that in January Again.
But, yes, this It is the first trade Which I will look at and it is Google.
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Invest with Henry has only this one call on this stock.