How Google’s Stock Split Opened the Door for Everyday Investors

Jack Carter | October 28, 2024

Hey Traders,

Today, I want to talk about one of the biggest game-changers in the tech world — Google’s stock split back in July 2022.

This move didn’t just shake things up in the market; it leveled the playing field for everyday investors like you and me.

Before that split, Google shares were sitting at over $2300 per share — a price that most retail traders wouldn’t even think of touching. We’re talking in the thousands of dollars for a single share!

And if you wanted to use one of the strategies I always talk about: covered calls, naked puts — or even credit spreads, this stock was out of the reach of most traders.

But in 2022, Google made a bold decision to split its stock 20-for-1, which brought its share price down to about $120 per share. A much more accessible level that opened the door for a whole new wave of investors.

And, for folks like us who don’t just buy and hold but actively trade — that split brought some real opportunities.

How the Stock Split Created New Trading Possibilities

When Google brought its price down, it did a few things that are key to understanding how to trade this powerhouse:

  1. Shares Became More Affordable
    Under the pre-split price, if you wanted to buy a block of 100 shares to do a covered call, a share price of $2300 would cost you $230,000. Even if you had that kind of money, would you have wanted to put a huge chunk of it — maybe the majority of your trading funds — into a single trade? Probably not.
  2. Options Became Way More Affordable
    When the stock price gets up there, options contracts follow suit. But after the split, those options contracts got a whole lot cheaper — which means more traders can access high-probability strategies with Google than ever before.
  3. Increased Liquidity
    A lower price point attracted more buyers and sellers, which means more liquidity. Liquidity is like oxygen for traders: it keeps trades moving smoothly, so you’re not sitting there trying to get filled on an order. And when you’re trading a stock like Google around high-volatility events like earnings, liquidity is your best friend.

Why Google’s Earnings Matter Now

So, why am I bringing this up now? Because we’re about to hit a key moment: Google’s reporting earnings tomorrow, Tuesday after the market closes.

Earnings season is when stocks really move. For Google, that could mean some major swings — and that’s where the opportunities come in. Trading around earnings with a solid strategy can be one of the most lucrative times to get in and out of stocks like Google.

But here’s the kicker… Not all strategies are created equal. I’ve seen folks take wild bets with options, hoping for the home run. But after nearly four decades in the markets, I can tell you that “hope” isn’t a strategy.

Instead, I like to play big tech earnings with a method that stacks the odds in my favor — something that doesn’t rely on buying risky options and hoping you’re right.

If you’ve been following along, you know that I prefer higher-probability strategies that target consistent, calculated gains.

In fact, if you’re looking to take advantage of Google’s upcoming earnings with a high-probability trade, there’s no better time to learn the ropes.

That’s why earlier today, I hosted a webinar where I broke down my #1 trade ahead of Google’s earnings — one that’s designed to take advantage of volatility without going all-in on risky, speculative plays.

If you missed it, don’t worry. You can catch the replay here to get the full breakdown and see how I’m planning to play this Google earnings report in a way that’s practical, calculated, and accessible to traders at all levels.

Trade well,

Jack Carter

Trending Stocks of the Week — October 28, 2024

Jack Carter | October 28, 2024

Google reports earnings Tuesday after the close — history says it will spike. But which direction is anyone’s guess. Here’s how I’m using a high-probability method to trade Google’s coin toss earnings.

Now for our top trending stocks of the week…

To help you discover the power of trends, every week I share with you a handful of the top trending stocks.

These stocks are picked by the custom-built TrendPoint software I designed to pick the strongest trending stocks in the market right now.

If you know anything about me, you know that every trade I get into starts with a trending stock.

Unless a stock is in a strong trend, I don’t want to hear about it. In my book, wishy washy stocks are the quickest way to losing money.

This Week’s Stocks

Two of three major indexes (SPY and DIA) hit new highs just 10 days ago. The SPY has been hovering around that all time high for the past 10 days. Meanwhile the DIA has retreated as much as 3%.

The QQQ, lagging as it has been these past few months is 1.5% below it’s all time high from back in July.

At times like this, we look for stocks trending more strongly than the broad market. And boy do I have some strong ones for you today.

This week’s three stocks are in strong, months-long trends:

  • ETR
  • IRM (on last week’s list, too)
  • SFM

And don’t forget about our previous list, which you can find here.

This week’s stocks show a strong trend and could still be in play for the next few weeks.

What can you do with these stocks?

Well, there are a couple of things you could consider — after doing your own research, of course:

  1. You could just buy the stock. This is probably the simplest thing you could do. Then just wait for it to go up and sell when you hit a profit target you’re comfortable with. This is only for stocks we’re long on. For stocks we’re short on, you can short them.
  2. You could buy an option. You know I’m not a fan of speculative plays, but every once in a while it doesn’t hurt to throw a little cash at a speculative option. Of course, while options can move bigtime if the stock goes up… the downside of options is that you have a time limit on how quickly you need the stock to make that move. So think about your risk tolerance and consider buying calls or puts depending on the stock recommendations above.
  3. You could do an income play. If you’ve been following me for any length of time, you know that I’m a big fan of income plays, because they increase your odds of winning. We do this by SELLING options instead of buying them. If you haven’t tried your hand at income trading yet, I urge you to try this exercise for yourself.

Without risking any money, it will really let you see the power of income trading and why it’s my favorite method.

Whether you end up doing naked puts, covered calls or some kind of spread (like this bull put spread example), income plays like these are really my preferred method to use when I’ve found a great trending stock like the ones on this week’s list.

Because even if the trend comes to an end, you don’t have to be exactly right. With a direction play like buying a call, you have to be exactly right. But an income play gives you a lot more “leeway”, where the stock can move against you and you still have room to breathe and win the trade.

That’s it for now.

Stay tuned, because I’ll be sending you a new list of TrendPoint Best Trending Stocks every week! (usually Mondays)

Trade well,

Jack Carter