Hello Smart Option Sellers! Let's go over the results from our two new put-sell trades from yesterday. AT&T (T) We had no problem getting filled on this new put-sell position yesterday. Most of the fills reported by our members occurred between $.26 to $.28 per contract, so we're taking the official mark at $.27 per. Here's what we did: Sold (sold-to-open) the T October 2017 $31 put options for an official sale price of $.27 per contract as an opening transaction (sold-to-open). If you have not placed this order yet, make sure you enter it as "GTC" (good-till-cancelled) within the range I gave.
Alcoa (AA) There were only a handful of trades that went across the tape at $.25 per contract yesterday and luckily a few Smart Option Sellers were able to get filled. Although we'll officially be following this trade, I understand that many of you were not able to get on board. This is a bit frustrating because the put option had a $.25 bid as I was writing up the alert yesterday so I knew the possibility of getting filled was very high. But in that short lag time between me sending out the alert and you receiving it, AA stock rallied a bit, causing the put option prices to decline just enough to lose the $.25 bid. So for now, the market on the put option stands at $.20 bid/$.25 offer. Let's give this one a few more days to work. If AA stock declines a bit, we should see more fills at $.25. If not, we can adjust the strike price. Continue to work your trade GTC at $.25 per. The official order is listed again below. 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).
Update on Gap, Inc. (GPS) GPS released earnings after the bell yesterday and initially the market liked what they heard. The stock rallied up to $25 per share from its closing price of $23.20. And even in the pre-market today, the stock stayed above $24. But on the regular open this morning, the stock started to drop and has hit a low of $22.03. It currently trades at $22.57 as I type. Sometimes you can never tell how a stock will move even if earnings are clear cut. No need for follow-up action on our position. Continue to hold this one and all others as-is. That's all for today. Have a great weekend! Regards, Lee Let's Grab That Cash!