I used a different, bid-dependent strategy after seeing it in another game recently which was an Italian transport in the sea zone West of Taranto, and a marine in Northern Italy. This requires a bid of 11 and to be all used on Italy, so it is imperative for Germany to do two things, and probably recommended to do a third:
Take Normandy & Paris to force Vichy, and land a fighter to contribute to the scramble in case of a Taranto attack.
Land several planes in Northern Italy. Preferably all that can reach after being used to attack 113/114. These are needed to land in Alexandria if Italy is allowed to move into it in force, and they cannot do so from W Germany.
Naval purchase as Germany on the first round. This puts a lot of stress on UK to defend London from a Sealion buy round 2, most players will buy 4-6 infantry and a fighter for London (assuming average outcomes in 113/114)
If the Italian fleet at Taranto is not attacked, the UK has a couple options. However some are made significantly less appealing due to the bid.
First, they are unlikely to try and hold Gibraltar using a Gibastion setup, as the extra transport and marine make the odds for Algeria very favorable and Malta can simultaneously be secured.
Second, fleet units left above Egypt (101?) are still vulnerable because of the German Air Force in Northern & Southern Italy, assuming Italy can capture Alexandria. This makes the most likely choice to move the carrier into the Red Sea.
Maximizing your early advantage here is imperative, with 3 transports you can move some troops to Tobruk, capture Malta and still take Greece. Often times there will be a destroyer blocking the option to take Gibraltar on turn 1, but if not you can capture GiB and Greece for the +5 NO. Either way, you have 3 transports + the ground units in Alexandria that will be able to attack Egypt. If the UK has managed to reinforce enough to forestall a full-force capture, you can unload units in Syria to actovate the units in Iraq, or reinforce in Alexandria and take Crete with the marine to get Germany their +3 NO starting round 3.
After that it is usually a choice between holding Egypt or Iraq. I would say Egypt is best as long as you can get a German unit there for the +5, as that is net 7 for the Axis. Iraq is good if Germany is already doing very well, as it concentrates a little more income into Italy’s pocket to continue contesting the Med/Middle East while Germany focuses on the Bear. And troops in Iraq should b able to start trading UK in NW Persia for another +2.