Hello Smart Option Sellers! Let's get an update on our new put-sell trade. Goodyear Tire (GT) About 65 contracts traded at our price of $.30 yesterday on this new put-sell play. Luckily, some of our Smart Option Sellers were able to quickly get filled on those. I know that is not even close to the amount we need for everyone else to get filled. Although we're going to start officially following this trade, I want the rest of you to keep your order working "GTC" at $.30 per contract for now. All we need is another quick pop down in the stock price in order for the put option prices to go back up. It's pretty amazing at how fast down-moves in the market get bought back up. Just last Wednesday, we had that nice move lower in the stock market, which gave me hope that we'd be able to jump into some new put-sells no problem. When stocks have large swift moves lower, the volatility goes up and it takes put option prices with it. Well, so much for that move lower. It only lasted one day and has now regained back everything. I have been talking about the lately and how it affects option prices.
The VIX is the "fear gauge" of the market and it represents investor's view of the upcoming moves in the market. The VIX had been scraping along all-time lows in the market near its 10 point level, meaning all is good and everyone is complacent. This was evident in how the stock market had been cruising along on a non-stop higher trajectory (good for all long-term stock holders). And then last Wednesday and early Thursday, it spiked up to the 16 level. That was a big 60% move, enough to allow someone to sell puts at higher levels (if you were super quick about it). Because just like that, the VIX is now back down below the 11 level. It's sometimes hard to get things done when conditions move that quickly. So once again, we have to play with what the market gives us. Let's give the GT put-sell trade a few more days to see if the rest of the gang can get filled. Also, we're still working the Alcoa (AA) put-sell trade. This one may have to be adjusted and I'll send an update if/when necessary. Don't get discouraged by these moves or if you haven't been filled yet on some of our plays. It happens. Good thing is that there's always more cash to collect from upcoming trades. That's all for now and continue to hold all other trades as-is. Contact us here. Regards, Lee Let's Grab That Cash!