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:
- 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. - 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. - 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