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 far as the amount of cushion we're able to get with this trade. With AA stock currently at $31.60, we'll be able to start with a solid 35% cushion and $11 range above the strike price. Here's what you can choose to do: Sell (sell-to-open) the AA October 2017 $20 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 $.25 bid/$.30 offer, so we should be able to get some sales off right away. Follow the same instructions I gave for AT&T. Do not sell for anything less than $.25 per contract. Both of these stocks don't report earnings again until July, so I don't foresee much volatility whipping the stock prices around. This will help time decay kick in and cause the put option prices to wither away. This will help us to make a profit. Get those orders in now and let us know how you do. You can contact us here. Just a quick final note: Gap Inc (GPS) reports earnings after the bell today. We currently have a put-sell position on the GPS September 2017 $17 put, but I don't foresee too much action affecting the trade. If anything crazy occurs, I will send out an update tomorrow on follow-up action if necessary. That's all for now. Regards, Lee Let's Grab That Cash!

Recent Posts
Archive

THE SMART OPTION SELLER

©2016-2020 Smart Option Seller                Lee Lowell