Trade Update And Friday Q&A
Hello Smart Option Sellers! We're filled on yesterday's new put-sell trade on Bristol Myers Squibb (BMY). Obviously, the stock kept its downward trajectory during the day so the put options got more expensive as the day wore on (put option values go up as stocks move lower). None of us can complain that we weren't able to get into the trade at good prices! The put option traded in a wide range during the day spanning from $.30 - $.62 per contract, with the vast majority of our member's fills being in the $.45 area, so that's where we'll take the official mark. Here's what we did: Sold (sold-to-open) the BMY June 2017 $38 put options for an official sale price of $.45 per contract as an opening transaction (sold-to-open). For anyone who has not gotten into this trade yet, you can still do so at current prices. Friday Q&A It's time for our first installment of Friday Q&A. If you ever have a general question about the put-selling strategy, please send them in and I will answer here in these Q&A sessions. It's good to discuss these in a group setting as many of you probably have the same questions but might not think to ask. We only have one for today so please keep them coming! Q: I HAVE 6 SOLD/PUTS I SOLD DEC OR EARLY JAN. THESE EXPIRE IN MAR AND APR. I HAVE ABOUT A 75% PROFIT ON EACH OF THESE. NOT INDIVIDUAL ADVICE TO ME, BUT IN GENERAL, WHEN OPTIONS ARE ABOUT 60 DAYS OUT AND YOU HAVE A PROFIT OF 75% IS IT WISE TO TAKE A PROFIT OR HOLD TO TRY TO MAXIMIZE THE PROFIT? A: Many of you might remember my "80% Rule". This rule states that if you've captured at least 80% of the full profit potential from your put-sells, it's a good idea to lock in the gains. It's entirely up to you what threshold you set, but I always like to ring the register and book some profits. You can bank all the gains or some of the gains. It's better to lock some in, and then if you want, maybe let a few ride. Here at The Smart Option Seller, we will always take our gains once we've hit that 80% mark. Well, that's all for today. Have a great weekend everyone, and thanks for making these first two weeks very successful! You can always reach us here: Regards, Lee Let's Grab That Cash!
Smart Option Seller Portfolio
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.
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