Kevin Kelly Suggests A Long-Term Options Strategy For Alphabet
Kevin Kelly spoke on Bloomberg Markets about a long-term potential for Alphabet Inc (NASDAQ: GOOGL). He thinks that the stock could become bigger than Apple Inc. (NASDAQ: AAPL) and he suggested that investors should consider a bullish options strategy in the name.
Kelly wants to buy the January 2018, 800-strike call for $125 and sell the January 2018, 1,180-strike call against it for $25. The call spread would cost him $100 and his maximal gain is $280. He would rather use options instead of just buying the stock, because he wants to limit his potential loss in case of a bad earnings report or some problems that could occur in transition from Google to Alphabet.
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