Hello Smart Option Sellers! It's time to lock in some gains on one of our put-sell plays. Gap Inc. (GPS) We're ready to take profits on this play. This will be our second successful trade since launching back in January. GPS stock has pretty much meandered in a $3 range since we established this position on January 31st. A small trading range does wonders for put-sellers like us. Why? Because if the stock goes nowhere, option prices erode that much quicker. And that's exactly what we need to happen in order for us to buy the put option back cheaper than what we sold it for. Time passing = option price erosion. If you were able to enter this put-sell trade back in January, now is the time to take your profits. Here's what you can choose to do: Buy back (buy-to-close) all of your GPS June 2017 $15 put options for a limit buy price of $.05 per contract or cheaper, GTC, as a closing transaction (buy-to-close). Let's discuss this buy-back trade. Important: You will only buy this put option back if you had already sold it when first recommended. This is not a new trade for you to buy this put option outright. You are only buying it to close out the put-sell trade. This is part of my "80%" Rule which states we look to buy back the put options we've sold if they've lost 80% or more of their value. We do this regardless of the expiration date. We sold the GPS put option on January 31, 2017 at an official price of $.28 per contract. Today we are going to buy it back at $.05 per contract to lock in a $.23 per contract gain. The value of this put option has eroded 82% ($.23/$.28 = 82%) since we sold it, so we invoke the 80% Rule and buy it back to lock in the gains. Currently, the GPS put option is showing a $.05 offer price, so we should be able to get filled right off the bat. Although we will be buying this put option for $.05 today, you can opt to continue to hold if you want and see if you can buy it cheaper a little while from now. The choice is yours, but officially, we are closing it out for $.05 per contract. Remember, you will only buy this put option today if you've already sold it previously. That's all for now. Get those orders in now and let us know how you do. You can contact us here. Regards, Lee Let's Grab That Cash!
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