{"id":423,"date":"2021-02-18T21:05:30","date_gmt":"2021-02-18T13:05:30","guid":{"rendered":"http:\/\/3.68.57.190\/?p=423"},"modified":"2025-09-29T17:27:04","modified_gmt":"2025-09-29T09:27:04","slug":"google-stock-neutral-options","status":"publish","type":"post","link":"https:\/\/www.slashtraders.com\/en\/blog\/google-stock-neutral-options\/","title":{"rendered":"Trade Google Stocks This Way to Get 80% Return"},"content":{"rendered":"<p class=\"wp-block-paragraph\">Do you dream about creating a passive income from buying blue-chip stocks like Google?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But GOOGL costs $2000 per share which is difficult to allocate your assets and manage risks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We will show you how to trade Google with less Buying Power and get a great return.<\/p>\n\n\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Trade Google Stocks?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Google is the world's most popular search engine, with 92% of the global market share for search. We are so used to browsing the internet through Google as the first step, its name is synonymous with the verb search.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/google\u548calphabet\u7684\u8edf\u786c\u9ad4\u670d\u52d9-1024x576.png\" alt=\"google and alphabet hardware and software services\" class=\"wp-image-429\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Google and Alphabet provide a lot of services that we can't live without.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Google and its parent company <a href=\"https:\/\/abc.xyz\/\" target=\"_blank\" rel=\"noopener\">Alphabet<\/a> provide a lot of <a href=\"https:\/\/en.wikipedia.org\/wiki\/Google#Products_and_services\" target=\"_blank\" rel=\"noopener\">hardware, software and cloud services<\/a> that we use almost every day, so we expect GOOGL to continue to rise in value over time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">GOOGL Price Trends Over the Past Year<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Google's stock price continued to climb at a steady pace during the past year, similar to other blue-chip companies in the S&amp;P 500 index, such as FAANG stocks, Facebook, Apple, Amazon and Netflix.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But GOOGL has risen to around $2100 per share, making it a big stock that is difficult to make investment risks with asset allocation.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/\u53bb\u5e74GOOGL\u80a1\u50f9\u8d70\u52e2-1024x576.png\" alt=\"Last Year&#039;s GOOGL Share Price Trend\" class=\"wp-image-435\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">GOOGL had strong and steady growth in 2020, with a stock price approaching $2100.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">We need a way to trade GOOGL with minimum Buying Power to maintain a good asset allocation while having a high Return on Capital (ROC).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Increase Leverage Without Increasing Risk<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If we monitor the Bollinger Bands on Google's stock price, we notice right now the <a href=\"https:\/\/slashtraders.com\/en\/blog\/market-volatility-hv-iv\/\" target=\"_blank\" rel=\"noreferrer noopener\">IV is high<\/a> due to wider Bollinger Bands. So this is a good time to sell <a href=\"https:\/\/slashtraders.com\/en\/blog\/options-value\/\" target=\"_blank\" rel=\"noreferrer noopener\">options for a high premium<\/a>, then we can close the trade in the future when IV falls.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/bollinger-bands-1-1024x576.png\" alt=\"bollinger bands of GOOGL\" class=\"wp-image-2037\" srcset=\"https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/bollinger-bands-1-1024x576.png 1024w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/bollinger-bands-1-300x169.png 300w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/bollinger-bands-1-768x432.png 768w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/bollinger-bands-1-16x9.png 16w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/bollinger-bands-1.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Based on the Bollinger Bands of GOOGL in the past year, right now the stock's IV is relatively high.<\/figcaption><\/figure>\n\n\n<p><\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Since we cannot be 100% sure whether Google will rise or fall in the short term, we can use the <a href=\"https:\/\/slashtraders.com\/en\/tools\/options-scanner\/\" target=\"_blank\" rel=\"noopener\">options screener to define an Iron Condor<\/a> that is profitable if the underlying doesn't experience a huge move:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Sell a $1950 Put and a $2190 <a href=\"https:\/\/slashtraders.com\/en\/blog\/sell-covered-call\/\" target=\"_blank\" rel=\"noreferrer noopener\">Call<\/a> to define a profitable price range<\/li>\n\n\n\n<li>Buy a $1940 Put and a $2200 Call to set a limit our maximum loss<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/Google\u80a1\u7968\u7684Iron-Condor-1024x576.png\" alt=\"Google stock in Iron Condor\" class=\"wp-image-440\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">We can define an Iron Condor for GOOGL with 80% ROC.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This trade has around 50% Probability of Profit, and requires $555 Buying Power for $445 premium, with 80% ROC.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If GOOGL remains within the range of our strike prices after a month and a half, the 4 <a href=\"https:\/\/slashtraders.com\/en\/blog\/what-are-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">options<\/a> will expire worthless, and we collect all the premium.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><a href=\"https:\/\/www.slashtraders.com\/en\/pricing\/?utm_source=blog&amp;utm_medium=banner\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"971\" height=\"120\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner.png\" alt=\"slashtraders trial banner\" class=\"wp-image-7387\" srcset=\"\" sizes=\"(max-width: 971px) 100vw, 971px\" data-srcset=\"\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Trading an Iron Condor on TD Ameritrade<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If we visit the Trade tab inside <a href=\"https:\/\/slashtraders.com\/en\/blog\/td-ameritrade-review\/\" target=\"_blank\" rel=\"noopener\">TD Ameritrade<\/a>, we can choose the options that expire next month, and sell an Iron Condor at $1950.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/\u8ce3\u9435\u5140\u9df9iron-condor-1024x576.png\" alt=\"Sell iron condor\" class=\"wp-image-450\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">SELL a $1950 Iron Condor in the Trade tab.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Fine tune the trade settings:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>SELL $1950 Put<\/li>\n\n\n\n<li>SELL $2190 Call<\/li>\n\n\n\n<li>BUY $1940 Put<\/li>\n\n\n\n<li>BUY $2200 Call<\/li>\n<\/ul>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/adjust-iron-condor-settings-1024x576.png\" alt=\"adjust google iron condor settings\" class=\"wp-image-2495\" srcset=\"https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/adjust-iron-condor-settings-1024x576.png 1024w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/adjust-iron-condor-settings-300x169.png 300w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/adjust-iron-condor-settings-768x432.png 768w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/adjust-iron-condor-settings-16x9.png 16w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/adjust-iron-condor-settings.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Adjust the Strike Prices and quantity of the Iron Condor settings.<\/figcaption><\/figure>\n\n\n<p><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Finally change the contract Qty to 1 and analyse the trade.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/max-profit-and-loss-of-iron-condor-1024x576.png\" alt=\"max profit and loss of iron condor\" class=\"wp-image-2060\" srcset=\"https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/max-profit-and-loss-of-iron-condor-1024x576.png 1024w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/max-profit-and-loss-of-iron-condor-300x169.png 300w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/max-profit-and-loss-of-iron-condor-768x432.png 768w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/max-profit-and-loss-of-iron-condor-16x9.png 16w, https:\/\/www.slashtraders.com\/wp-content\/uploads\/2021\/02\/max-profit-and-loss-of-iron-condor.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Maximum profit and maximum loss of an Iron Condor.<\/figcaption><\/figure>\n\n\n<p><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This trade has around 50% Probability of Profit, and requires $555 Buying Power for $445 premium, with 80% ROC.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If GOOGL remains within the range of our strike prices after a month and a half, the 4 <a href=\"https:\/\/slashtraders.com\/en\/blog\/what-are-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">options<\/a> will expire worthless, and we collect all the premium.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But any experienced option trader knows that we don't hold onto the options until it expires, but close them early:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>After you reach 50% profit<\/li>\n\n\n\n<li>Or when we are down to 14 days to expiration<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">So you can maximise your chance of profit with minimum risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If we compare trading stocks versus <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-iron-condor-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">trading an Iron Condor<\/a>, we see that stocks have only 50% chance of profit, and it requires a large upward price move to have a high return.<\/p>\n\n\n\n<table id=\"tablepress-5\" class=\"tablepress tablepress-id-5\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Strategies<\/th><th class=\"column-2\">Market direction<\/th><th class=\"column-3\">Probability of profit<\/th><th class=\"column-4\">Maximum return<\/th><th class=\"column-5 translation-block\">Cost of trade<br> (or buying power)<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Stocks<\/td><td class=\"column-2\">Upward<\/td><td class=\"column-3\">50%<\/td><td class=\"column-4\">Depends on size of upward move<\/td><td class=\"column-5\">$2,100<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Iron Condor<\/td><td class=\"column-2\">No matter rise or fall<br \/>\n(stay within the range of strike prices)<\/td><td class=\"column-3\">48.27%<\/td><td class=\"column-4\">80%<\/td><td class=\"column-5\">$555<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-5 from cache -->\n\n\n\n<p class=\"wp-block-paragraph\">Trading an Iron Condor gives you more room for profit without being correct on the direction of stock movement, as long as the stock price stays within your strike prices, you can collected up to 80% Return on Capital.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If the trade goes wrong, we can <a href=\"https:\/\/slashtraders.com\/en\/blog\/iron-condor-adjustment\/\" target=\"_blank\" rel=\"noreferrer noopener\">roll up or down to repair the Iron Condor<\/a> and minimise our losses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Trading options only requires 1\/4 of the Buying Power of buying shares, making it easier to manage your portfolio.<\/p>\n\n\n\n<p class=\"has-ast-global-color-4-background-color has-background wp-block-paragraph\"><a href=\"https:\/\/www.slashtraders.com\/en\/blog\/slashtraders-vs-sp500\/\" target=\"_blank\" rel=\"noreferrer noopener\">SlashTraders vs S&amp;P 500: 450% Outperformance, Verified Trades and How to Copy Every Alert<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Do you dream about creating a passive income from buying Google stocks? We will show you how to trade Google with less Buying Power and get a great return.<\/p>","protected":false},"author":1,"featured_media":2029,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"plain-container","ast-site-content-layout":"normal-width-container","site-content-style":"unboxed","site-sidebar-style":"unboxed","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","_wp_rev_ctl_limit":"5"},"categories":[3],"tags":[56,12,64,19,14,11],"class_list":["post-423","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-cn","tag-en","tag-es","tag-googl","tag-options","tag-tw"],"_links":{"self":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/comments?post=423"}],"version-history":[{"count":4,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/423\/revisions"}],"predecessor-version":[{"id":13907,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/423\/revisions\/13907"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/media\/2029"}],"wp:attachment":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/media?parent=423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/categories?post=423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/tags?post=423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}