Update On EMR & Other Trade Adjustments

Update On EMR

Hello Smart Option Sellers! Emerson Electric Co. (EMR) We placed a new put-sell trade on EMR yesterday and are seeing some fills. I heard from a handful of members that they were filled at the $.20 per contract mark. I've also seen a few trades at $.20 go across the tape this morning as well. Here's what we did: Sold (sold-to-open) the EMR September 2017 $45 put options for an official sale price of $.20 per contract as an opening transaction (sold-to-open). With EMR stock falling about $.55 per share as I type, I feel confident that if you have your order working GTC (good-til-cancelled) at $.20 per contract, then you will most likely get filled. If you have your order working to sell at $.25 per contract, it may take a bit longer as you'll need the stock to drop it a bit more. The choice to sell at $.20 or $.25 is entirely up to you, but officially, we are marking the trade done at $.20 per contract. I like this trade a lot, and with our $45 strike price being about 23% below the current stock price, we have a good cushion for more stock movement. I like to shoot for a 20% to 30% buffer between the strike price and the current stock price. Trade Adjustments We're going to make adjustments on all three of our unfilled put-sell trades. If you are unsure of which trades these are, I have made a new section of the Portfolio for easy tracking. You can find the Portfolio towards the bottom of every alert. Colgate Palmolive (CL) I'm really unhappy with how wide the spreads are in the option prices on this one, and the fact that we couldn't get filled even when we originally offered to sell at a good price. I want to completely cancel this trade for now. Here's what you need to do: Outright cancel your working order to sell-to-open the CL August 2017 $55 put options. Let's put this one to rest for awhile. Maybe we'll re-visit at a future date. Procter & Gamble (PG) We're so close on this one. Driving me a bit crazy. The market is very stubborn at times. Let's lower our offer price on this trade by a few pennies. That will certainly help us get filled. Here's what you need to do: Lower your sell-to-open order on the PG October 2017 $65 put options to a limit sell price in the range of $.20 - $.25 per contract, GTC, as an opening transaction (sell-to-open). We had been working the sell order in the range of $.25 to $.30 per contract. Now we're just lowering it by $.05 per contract. This should help us get filled. As of now, the market on this put option is $.20 bid/$.25 offer, so we should be able to get some sales off. This option can trade in penny increments, so don't just sell right away at the bid price of $.20 per contract. Start your offer at maybe $.23 or $.22 per contract and work it incrementally lower until you are filled. Do not sell for anything less than $.20 per contract. I had thought about moving us up to the $70 strike which is currently trading for about $.35 per contract, but I'd rather not give up the extra $5 of cushion (going from $65 to $70). I would rather have us lower our sell price on the $65 put instead. Safety first! Kellogg (K) I mentioned yesterday that K was releasing earnings today before the open. The market viewed the results favorably and the stock is up $.90 per share right now at $69.85 per share. We're going to adjust our working put-sell order. Here's what you need to do: Outright cancel your working order to sell-to-open the K July 2017 $55 put options. And replace it with this one: Sell (sell-to-open) the K September 2017 $55 put options for a limit sell price in the range of $.20 - $.30 per contract, GTC, as an opening transaction (sell-to-open). Right now, the market on this put option is unfortunately wide at $.10 bid/$.40 offer, so let's see if we can get some sales done within my recommended range. Once again, don't try to sell immediately at the low end of the range ($.20). Let's haggle a little. It's the best way to get the best fill prices. Start at $.30 per contract, and if not filled after a few minutes, move it down to $.25 per contract, and then down to $.20 if you have to. We just don't want to look too desperate. Do not sell for anything less than $.20 per contract. I understand that once we all get going on this trade, our offer price might end up at $.20 per contract, but at least let's try to get more than $.20 to start. Good? That's all for now. Get those adjustments in there and continue to hold all other positions as-is. Contact us here with any questions. Regards, Lee Let's Grab That Cash!