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Market Update And Friday Q&A

Market Update Hello Smart Option Sellers! Another trading week under our belt, and the Dow is back above 20,000. Our positions are looking good. Bristol Myers (BMY) stock has rallied back nicely, bringing the put option prices down with it (good for us). Looks like we really timed this one right as we entered the trade on the same day that BMY put in its low. It's moved higher since. That's positive for us. For anyone who has not entered this put-sell position yet, you can still get onboard within my recommended range. For those who have gotten in, continue to hold the position as-is. Target (TGT) stock is still languishing around its lows, but based on my chart indicators, it looks like the selling has stemmed. I think we'll see sideways to slightly higher price action in the near future. For anyone who has not entered this put-sell position yet, you can still get onboard within my recommended range, albeit at the lower end. If Target stock starts to tick up soon, the put option price will move down more, putting it out of range for any new put-sells. If you're already in this trade, continue to hold as-is. Gap, Inc (GPS) was a fast mover for us. The stock itself didn't really move much since we initiated the put-sell trade, put the put option prices went down rather quickly, giving those who entered a quick paper profit for now. This was a situation where I felt the option prices were a bit on the high side based on the stock's movement, and we took advantage by selling the puts quickly. Once the collective market sees something out of whack like we did, that opportunity closes fast. We just beat them to the punch. If you're in this put-sell trade, continue to hold as-is. Friday Q&A I try to use Fridays as our day to answer most non-pressing questions, so if you need something answered, just send them in! Q: I am not getting filled on contracts. On GPS I ordered 20 -C at limit price .30 lower to .28 have not got filled. What do you suggest maybe fewer C at each purchase. Before most of the time I ordered 20-C. Thanks A: One of the reasons why I use the text alert system for your phones is to give you the quickest head's up that we have a trade setup in front of us and we need to take action quickly. At that point, the alert should hit your email within a few minutes. I understand that not everyone has the means to always check for texts or emails. We're all busy and have other things in front of us. To help with that, I try to give a decent range in which to sell the put options, and most everyone should have the opportunity for at least a day or so to enter. After that, if the option prices have moved away from you, the best course of action is to place your "GTC" (good-til-cancelled) order and let it sit there until you get filled or I decide to unwind the trade. Many times stocks have dropped in price after we've entered the trade and the put option prices will pop back up again, allowing you to get filled. Have some patience. And if you don't get this one, no big deal. There will be plenty more trades ahead of us. Q: Was out of the loop for a few days and see that price has dropped from the .29-.30 range to .21. I put in my trade with a .25 limit. Should I have done this or am I just wasting time? A: Nope, you did exactly what you should've done. Like I said above, you never know if the stock price will drop and send the put option price back up. Keep the GTC order in there and wait. Well, that's all for today. Have a great weekend everyone! You can always reach us here: Regards, Lee Let's Grab That Cash! P.S. Don't forget to read my new report: Put-Selling Basics. It's free!


Smart Option Seller Portfolio


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