New Trades!

New Trades!

Hello Smart Option Sellers! Let's take advantage of the market drop yesterday and get some new trades on the books. I've got two for you all today. AT&T (T) There's no denying the ubiquitous presence of mobile phones in the world. It has taken over practically every facet in our lives. And will continue to do so for the foreseeable future. But, in order to use that mobile phone, you need to have a calling plan. We already have a put-sell position on the largest carrier - Verizon (VZ). But I want to add another position on its biggest competitor - AT&T (T). These two carriers dominate the calling plans in the U.S., followed by Sprint (S) and T-Mobile (TMUS). Plus, you have to love the dividend "Aristocrat" status that AT&T has. It has raised its dividend every year for 33 years running. It just adds to its solid blue-chip status. Here's what you can choose to do: Sell (sell-to-open) the T October 2017 $31 put options for alimit sell price of $.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Currently, this put option has a market of $.26 bid/$.30 offer, so we should be able to get some sales off right away. Remember, you don't need to sell right at the prevailing bid price. "Work" you offer price a bit and do some haggling! If no one bites, incrementally move your offer price down. Do not sell for anything less than $.25 per contract. With T stock currently at $38 per share, it gives us a nice $7 and 18% cushion above the $31 strike price. Although I like to choose stocks with over a 20% cushion, you need to factor in the range of movement the stock typically trades in. T is not the most volatile stock, so the cushion will be slightly lower. Alcoa (AA) This one has surprised me a little bit as fa