Short-term upside is exhausted so sell LEAPS options for profit; maintain long stock position due to continued business growth and potential price target of $900-$1,000 by 2027.

Three weeks ago, I made a rather bold bet on MetaTrader using Lips options . I hope you didn't miss out on that deal. Because a " leap" option is leveraged, when the stock rises by 3%, the option can rise by 9 or 10% because it is a leveraged instrument.

So, you see the reminder here where I publicly covered "Meta". Here is my financial center that made a profit of more than $11,000.

Let me discuss how I knew that "Meta" was a great purchase, and where the current opportunity lies. The important thing is why I bought "Meta" in the first place, because the same process is now showing me another opportunity.

First, why did you think Meta was undervalued at around $580 per share? When I bought Meta, I wasn't trying to predict the stock price the following week. I was looking at the business side, and this is something I think investors forget when a great company starts selling aggressively.

The share price can change much faster than the company's underlying business changes.

Meta's business was still growing very rapidly. In fact, in the second quarter, Meta generated revenues of $60.8 billion . That's 28 % year-on-year growth for one of the largest companies on Earth.

Think about how crazy that actually is. We are not talking about a $5 billion company growing at 28%. We are talking about Meta, Facebook, Instagram, WhatsApp, and Messenger.

The company is still achieving growth figures that you would normally associate with a much smaller technology company . But revenue growth wasn't the only figure that caught my attention.

The appearance of advertisements. Well, this is extremely important because advertising is Meta's core business. This is where she makes all her money.

Ad visibility increased by 14%. The average price that Meta received per ad increased by another 12%. This is amazing, and this is exactly the kind of expansion I'm looking for as an investor .

Meta platforms are used on average by 3.6 billion people every day. That is one of the biggest competitive advantages in the world.

Advertising is everything these days. It's a war for attention. You can see this across all social media platforms, the amount of time people spend on them daily, and the amount of money made from them.

Meta generated approximately $59.4 billion in advertising revenue in the second quarter alone.

This is the engine that funds everything else Zuckerberg wants to build. Artificial intelligence does not necessarily need to become a completely separate business for Meta to make money from it.

If artificial intelligence makes Instagram's recommendations a little better , or keeps people watching Reels for longer, or maybe helps advertisers create better ads, well, you can see what I'm getting at.

Meta can generate more money, and in large quantities, within the same ecosystem it already owns, simply by making a few improvements.

This is one of the biggest reasons why I remain optimistic about this stock. That's why I said 3 weeks ago: "I think buying Meta at $550 is a great deal." By the time I quoted the price at $580 per share three weeks ago, my Discord community had already entered early at 580, and I was, for lack of a better expression, bragging about how successful we were at that price.

Just imagine the situation today, can't you? After only 3 or 4 weeks.

Meta doesn't need to create an entirely new business for artificial intelligence to be important. Artificial intelligence can improve its current work. That's why I'm currently making money from "Meta".

Now , this is where things get really interesting, because there is a legitimate reason for investors to be concerned about "meta ", and that is spending. Meta expects to spend approximately $130 billion to $145 billion on capital expenditures in 2026 to support the artificial intelligence infrastructure at the heart of its business.

This is a very large amount of money. You can already see the impact of that on its operating expenses. Operating expenses have increased significantly, and this is one of the risks facing Meta.

Free cash flow was only $784 million in the second quarter, compared to $8.5 billion in the same quarter last year. Therefore, with increased spending on infrastructure, this significantly impacts their net profits.

So, when investors ask, "Henry, what if all this spending on artificial intelligence doesn't pay off?" This is a perfectly legitimate concern . In fact, this is the risk you need to understand before buying Meta stock.

But here, too, I think the opportunity starts to get really interesting. For a long time, investors could look at Meta's spending on artificial intelligence and say, "Okay, you're spending all this money .

Where's the new revenue?" Okay, now we're starting to get an answer. Meta has recently expanded into enterprise AI, looking for ways to sell AI products and services directly to businesses, rather than relying entirely on advertising.

This is important; Because there are two different possibilities for the returns on Meta's investments in artificial intelligence. The first is to improve Facebook and Instagram, by providing better recommendations, more effective ads , and increased engagement.

But the second possibility is much more likely . Can Meta transform all this AI infrastructure into an entirely new business? If the answer is ultimately yes, investors may have to start looking at " meta" differently.

I was one of the first investors in Meta, just as I was in Palantir, Nvidia, AMD, Bloom Energy, and many more on my channel. You can watch all my old videos , and you'll see that I was right about most of my bets.

The central size in "Meta" is not that big in reality. I made $11,000, but overall, my position in Meta is much larger, and unfortunately, the Lib options I own have achieved excellent percentage returns , and my community has benefited from that, but the stocks I've invested in have performed really well .

Its value has increased, but not as much as that of "Lip" options.

So, I think I'm a little annoyed ; Because I saw the indicators clearly regarding "meta", but I did not invest heavily in "lib" options. So, I kind of blame myself, you know, for owning too much stock and not enough long-term option contracts .

In fact, I now believe, unfortunately, that Meta has achieved significant short-term growth , so this is a good time to sell some shares and take profits, especially the short-term profits it has made from this huge rise from $550 to over $700 where Meta is settling today.

For me at the moment, it's a time to take profits as I'm likely to get rid of my long-term option contracts . However, I plan to hold onto my shares because I believe that Meta still has more room to grow.

In fact, I think Meta could reach $900 or even $1,000 per share by 2027. But in the short term, I think the growth momentum has run its course.

So, the big question I want to answer in this video is: Have the reasons that led me to buy "Meta" changed, and is this definitely the right time to sell?

Well, the reason I bought Meta hasn't changed, but is this a good time to sell if you have a profit? As you know, I have obviously made substantial profits from long-term option contracts .

Is it a good time to profit from long-term option contracts ? I think the answer is yes, I will withdraw profits from long-term options contracts in "Meta" now.

The company continues to grow, its advertising business is huge, and billions still use its products. Artificial intelligence is already helping the core business, and I think what we're going to see now is that Meta will make a lot more money even though it hasn't had its best quarterly profits because of all the money it's investing.

So Meta is now trying to create additional ways to monetize the infrastructure on which it has already spent a lot of money , and I think this will work very well.

Does this guarantee that the share price will rise? Absolutely not. If Meta continues to spend at this rate without generating a suitable return, the market may punish the stock and things could turn very quickly.

That's precisely why I think Meta is an interesting stock at the moment. You get a very lucrative advertising business plus a huge investment in artificial intelligence, which will likely pay off eventually , something that is still a subject of much debate in the market right now.

This difference of opinion is usually where the greatest opportunities lie.

So I am somewhat proud that I went against the grain and ended up achieving very good results . But I'm not really interested in chasing Meta just because my previous trading was successful, you know.

The situation is slightly different for the price of " Meta" stock. So, what am I going to do today? I will set a price at which the potential return will give me sufficient compensation for the risk I am taking.

At the current price, I am no longer very optimistic about Lippes' options, but I am still optimistic about the stock itself.