Trade Updates

Trade Updates

Hello Smart Option Sellers! Lots to talk about today. Gilead Sciences (GILD) As mentioned yesterday, GILD was releasing earnings after the close yesterday. It missed analyst's expectations on both EPS and revenues. Plus, sales were lower than the same quarter last year. You would think that would be the recipe for a big drop lower, at least enough to produce a profit for those of you who bought the options yesterday. Well, as of now, GILD stock is only lower by about $1 per share, putting it near $67.50. Not enough to give quick gains. Based on the strikes that some of you bought, you would need GILD to move either below $63.50 or above $73.50. At this point, those strikes will probably have very little value, so it makes sense to hold onto them until Friday. You never know if there will be follow-through, as the stock could keep dropping over the next two days to make it into a profitable endeavor. It's a low probability game buying options before earnings, but as long as you stick to the very cheap options, you can be involved multiple times. All it takes is one or two big gains to overcome the little losses. Even Apple (AAPL), which released earnings yesterday too, missed on their expectations. But the stock is only falling a little over $2 per share. In order to have bought cheap options yesterday, you would've had to use strikes almost $10 radius around the stock price. That play was a huge bust. You really need to weed out the stocks that are capable of making the large moves yet finding options that are within that range for cheap. Not the easiest thing to do. But, we'll keep trying if that's the consensus. For now, hold your GILD options until Friday. Maybe we'll get lucky. Procter & Gamble (PG) and Colgate Palmolive (CL) Both of these stocks were down close to $1 per share yesterday. We have put-sell trades working on both and have not been filled yet. It's a bit surprising and frustrating at the same time. I want to see how today shakes out, as I feel we're getting close. If not, we may look to adjust. New Trade! Emerson Electric Co. (EMR) Talk about a solid company. EMR is considered a "Dividend Aristocrat" (some call them Dividend Champions), which only earns that distinction for companies that have been increasing their dividends for at least 25 years. EMR has been doing it for an astounding 60 years to date. Only a handful of companies have done it longer, only by hair though of 61 and 62 years. You can't discount companies that have that kind of dividend track record. It really shows the strength and quality of the stock. This is a great long-term hold of a stock, and we're going to enter a new put-sell play on it. If you're interested in seeing the stats on companies like this, here is a great site: EMR had released earnings yesterday and the stock initially dropped over $3 per share. I was salivating at the opportunity for us to get into a new put-sell at great prices. But as the day wore on, EMR recouped $2 of that drop, sending the put option prices back down. I still want us to give it a shot, but we're going to sell the put options for a bit cheaper than normal, just so we can get our foot in the door. Here's what you can choose to do: Sell (sell-to-open) the EMR September 2017 $45 put options for a limit sell price in the range of $.20 to $.25 per contract, GTC, as an opening transaction (sell-to-open). Currently, this put option has a market of $.15 bid/$.30 offer, so maybe we can get some sales off at $.20 or $.25 per contract. Once again, this is a tad lower in price than what we would normally sell for. Volatility in the market is still incredibly low (taking option prices down with it), which is affecting almost all stocks. So, we have to play what the market gives us, while keeping our trades safe and conservative. Get those orders in there and let us know how you do. You can contact us here. Kellogg (K) In case some of you forgot, we have an open put-sell order working on the K July 2017 $55 put for a sale price in the range of $.25 to $.35 per contract. Obviously we have not been filled yet. K releases earnings tomorrow before the open, so if they have a big miss, the stock should drop, possibly allowing us to get filled. Keep an eye on your order and if you haven't placed this order yet (for our newer members), you can do so now. The original alert for this trade is from issue #25 from March 9, 2017. You can log into the Archives to read this issue. I've also adjusted the Portfolio to include pending trades that aren't filled yet. This will allow all new (and current) members to see what hasn't been filled so they can place the trades too. The Portfolio can be found near the bottom of every alert. That's all for now. Continue to hold all other positions as-is. Contact us here. Regards, Lee Let's Grab That Cash!

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