Hello Smart Option Sellers! We're filled on our first official trade for the Target (TGT) put-sell position that was recommended yesterday. Prices for the put option ranged from $.28 to $.32 per contract yesterday, with a good majority of them at the $.30 mark - so that's where we'll set the official price. Here's what we did: Sold (sold-to-open) the TGT July 2017 $45 put options for an official sale price of $.30 per contract as an opening transaction (sold-to-open). Some of you who are just getting onboard with The Smart Option Seller may or may not have entered this trade yet. The current price of this put option is now down near the $.25 per contract level, and as I mentioned in the instructions yesterday, do not sell it for anything less than $.25 per. So along with those instructions, let me make a few comments about this specific trade and upcoming trades. As always, I'm looking to get us into a trade on stocks that I think are either done falling in price and/or about to make a move back up. When stock prices move back up, we make money quicker on our put-sell positions. That's why I try to time the trades to the best of my ability to wait for that imminent move higher by the stock. If I'm successful with my prediction, the put option prices will move away from us quicker, and will get cheaper in price faster. That's a good thing and a bad thing at the same time. The bad thing is that we need to act pretty quickly if we want to sell the put option at good prices. The good thing is that if I'm right, and we were able to sell the put option, then we'll make a profit that much quicker. This is one of the reasons why we're using the text messaging system as it allows you to check your email that much faster and potentially enter the trades more quickly. Markets move fast, and I want to do all I can to help everyone get into the trades as soon as possible. The other thing about the current market is the level of volatility, as I explained in our first alert. With the VIX being at historical lows, we are going to see much cheaper option prices right now. That's a function of the stock market moving higher and everyone feeling happy with not a lot of fear right now. This will cause us to sell our put options at slightly cheaper levels than I'd like to. The only ways to combat that are to either go further out in time for the expiration date (the longer the term, the more expensive the options), or to choose a strike price that's closer to the current price of the stock. I'm not a huge fan of either of those scenarios as I like to try to keep our expiration dates not more than five months out in time (July is a bit further), and if I choose a strike price closer to the current price of the stock, we open ourselves up to the possibility of getting assigned the shares. Now that's not a bad thing per se, but I know most of our members would rather not get assigned if possible. So keep those current market conditions in mind during this period of low volatility as it will help you understand the reasoning behind my picks. What's On Tap? As many of you might remember, we love to initiate a put-sell position after a stock has made a large move lower, especially if it's a quality blue chip. There's a few stocks on my radar right now that fit this situation, so keep an eye out for new trades in the next day or two. I'm specifically looking at Bristol Myers (BMY). They had a huge drop the other day due to a discontinuation of a clinical trial of one of their most popular drug therapies. We would've jumped on this trade Monday morning except that they have earnings coming out tomorrow (1/26) before the market opens. Earnings are always a crapshoot, and I wanted to wait to see if there would be any more damage that could allow us to sell the puts at even higher prices. As an unofficial recommendation, you could look at the put options on BMY to see if you'd like to dip your toes in before earnings come out. It could go either way, so play with caution. And by the way, the Dow has just gone over the 20,000 mark. That's all for today. Don't forget, you can always reach us here: Regards, Lee Let's Grab That Cash!
Housekeeping I plan to use this housekeeping space to give updates on website and member-related information. Some of it will remain fixed and some will be a one-time mention. 1. We now have our text messaging system in place. If you'd like to be notified on your mobile phone when a new alert is about to hit your inbox, join our text alert system by typing in your first and last name and mobile number here: You should then receive a welcome message from me. You can disregard the message that states how many messages you will receive per month. That's just for legal purposes and has no bearing on how many messages you'll actually receive from me. All other text messages you'll receive will just be a head's up that a new alert is about hit your email. For our international members, I'm working on plans to get you included for text messaging. I haven't forgotten about you! 2. All alerts will be archived on the website under the "Archive" section which you can find along the top menu of the website. If you are a new member, please use this section to read past alerts to see what we've been doing. This is a password-protected area for Smart Option Seller members only. The password to enter this area is smartoption. Please write this password down and keep it in a safe place. You will need it to access the Archives. 3. Don't forget about our Referral Program. See details here: As always, if you have any questions, comments or feedback, please let us know. Thank you! You can contact us here.