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Trade Adjustment

Trade Adjustment

Hello Smart Option Sellers! PureFunds ISE Cyber Security ETF (HACK) So far not much luck on this St.Patrick's Day. We weren't filled on the new HACK put-sell trade we recommended yesterday. The price on this option is now being offered below our target level. So, we're going to adjust the strike price and our price range. Here's what you need to do: Cancel your order to sell the HACK September 2017 $22 put options. And replace with this new order: Sell (sell-to-open) the HACK September 2017 $23 put options for a limit sell price in the range of $.25 - $.35 per contract, GTC, as an opening transaction (sell-to-open). With the volatility in the market (check out a chart of the VIX) hovering around all-time lows and going nowhere, option prices continue to remain subdued and lower than ever. As I've mentioned numerous times in the past, volatility has a direct effect on option prices. And when volatility is low, so are the option prices. This is not the ideal scenario for us put-sellers. In order to combat this issue, you can either go further out in time with the expiration date (more time = larger payments) or you can move the strike price to a higher level, which is what we're doing today. Currently, the $23 put options have a bid/ask market of $.10 bid/$.40 offer, so I'm more confident that we'll be able to get these done today. Remember the rules: 1. We are going to sell these put options as our trade. We are not buying them. 2. Do not use a "market" order. Only use "limit" orders. 3. Do not sell for anything less than $.25 per contract. The best course of action is to start your initial offer price at $.35 per contract. If no one bites, you can move your offer down incrementally until you get to $.25 per contract (no lower!). Of course I'd like to get more money upfront when selling these put options, but for the sake of safety and being conservative with my recommendations, we need to accept what the market gives us. You are always free to choose a different strike price if you'd like, but officially, we are sticking with the $23 strike as our official play. Get those trades in there and let me know if you have any questions. Contact us here. Portfolio Update: Continue to hold all other positions as-is. Except for the Target (TGT) put-sell trade, which is slightly underwater, all of our other positions are in the black and moving in the right direction. That's what we like to hear. That's all for today. Have a great weekend! Regards, Lee Let's Grab That Cash!


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