1Wk·

Finding your way out (your opinions & experiences?)

I am currently holding an $GOOGL (-1.17%) Open End Long warrant. The theory was that the Google IO event will announce something big and since GOOGL is already very undervalued, there could be a strong price increase.

I am up 20%.

After deducting taxes and costs, I should end up with a profit of around €50, which I'm quite happy with with a €300 stake.

With such price movements, I'm never sure when I should get out though. Knock outs can basically be held for much longer & since Google is undervalued, I believe that it can go on like this for a while.

Does anyone have experience in this area or an opinion?

16.05

Call @120USD ALPHABET CL A ORD Open-End

Bought x104 at €2.88

€299.47

7 Comments

Shem_sen@Shem_sen

1Wk

I've been in it for 3 weeks with a 5 lever and 500 euros and I'm currently up 80%. You can take your stake with you and let the profits continue....

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Mathis@MoneyMatze

1Wk

@Shem_sen Congratulations. I think I'll take a similar "long-term" approach. Thank you

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Jason M.@JasonMcMillen

1Wk

The main problem is that people are increasingly using Chatgpt and Deepseek instead of goolge. Still a monopoly, I will hold quasi buy & hold. think google can keep up with the competition through investments. Anything short-term is pure speculation. Tomorrow the Chinese can publish a Deepseek 2.0 and google makes -10-20%.

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Mathis@MoneyMatze

1Wk

@JasonMcMillen Fundamentally, nothing has changed so far to suggest that Google Search is really in danger. Moreover, Google is in a far better position than other AI companies to make it profitable at all. ChatGPT came to market in 2022 and search revenue grew 12% p.a. I see the potential risks but Google is in the best position to win the AI race. Google has the most data & in the benchmark Google AI is now in first place, despite the lead of other services. In addition, Google has long been more than just search. About 50% of its revenue is YouTube, subs & cloud, which is growing very fast & is far from reaching its limit.

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Jason M.@JasonMcMillen

1Wk

@MoneyMatze Yes, I agree. Sales growth of 2 digits, the data they have alone is worth a lot. I just wanted to criticize above, because there can always be short-term volatility, which will cause the Zocket with their warrants and 5 leverage to lose their investment. Well, you can't save them all.

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Shem_sen@Shem_sen

1Wk

@JasonMcMillen have google with 5k also as a normal share (buy&hold) in the portfolio 😉

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Mathis@MoneyMatze

1Wk

@JasonMcMillen Yes, I also have 3 portfolios. My "Active Money" portfolio is the one where I only do this. It's about 1/45 of the size of my main portfolio and I only put a maximum of 500€ per trade. I also see short-term volatility, which is why I bet on knock outs whose barrier is so low that it would only be triggered in the worst case. Worst case is not likely to be true in the near future, which is why I do it at all.

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