Trade Update

Trade Update

Hello Smart Option Sellers! I hope everyone had a nice long weekend. Let's get an update on last Friday's adjustment. Goodyear Tire (GT) I sent out an alert to lower the offer price to $.25 per contract on the GT put-sell trade for those willing to do it. A number of contracts went through at that price on Friday and a few more went through this morning. If you did not get filled, or did not alter your order, you can do so now and make sure it's working as "GTC" (good-til-cancelled). Considering that we only had a handful of fills at the original sell price of $.30 per contract and now we have a bunch more at $.25 per contract, I'm going to lower the official mark to $.27 per contract. It only seems fair to keep the official prices more in line with what most of our members get. No fudging of numbers here! That is not what we're about. Unofficial Earnings Play In addition to our normal put-selling activities, I will offer up unofficial earnings plays from time to time in which we try to capture large moves by stocks after the announcement is made public. We do this by purchasing very cheap short-term options. It has worked to our advantage a few times so far, and as our members keep asking me to do it, I will continue to give you these trades. There's a few stragglers left to announce earnings in the next few days and they happen to fall in the erratic retail clothing & accessories sector. Michael Kors (KORS) KORS falls into the higher end of the retail market and has seen its share price steadily decline since peaking in early 2014. It releases earnings before the opening bell tomorrow morning. It's currently trading for about $36.40 per share and has been prone to make gap moves after announcing earnings. As the stock price moves lower, these gap moves can become smaller, but still offering opportunities. KORS has the ability to move at least $5 per share after earnings are announced so you want to stick with option strikes within a $5 radius around the current stock price as long as you can buy them for $.20 per contract or less. Since earnings can go either way, you should look to buy both call options and put options, but if you have a feeling on a direction, you can certainly tailor your purchases to favor one side over the other. Here's what you can choose to do (unofficial play): Use the June 2, 2017 options which expire this Friday. Look to buy the $31, $31.50 or the $32 put options for your downside, and look to buy the $41, $41.50 or the $42 calls for your upside. Try to buy them for $.20 per contract or cheaper. This trade is good for today only. Do not enter these trades tomorrow. Remember the rules: 1. These are "unofficial" trades, so you can't hold me to it! 2. Buying options is a low probability trade, so there will be many more losses than wins. This is why you only want to buy the really cheapie options. 3. These are one-day trades. You will know very quickly whether it will be profitable or not. 4. Don't go hog wild. These are "fun" trades, but don't bet the house. 5. Use the June 2, 2017 expiration contracts that expire this Friday. As mentioned previously, the worst case scenario for these types of trades is if the stock goes completely nowhere after the announcement. That's the death knell for trades like this. All option values we're looking at will just evaporate and become worthless. So, keep that in mind if you don't think KORS is capable of the kind of move we need. Get those orders in if you choose to do so. Remember, you are buying these trades, and they are optional and unofficial. I will send an alert tomorrow morning on follow-up action. Continue to hold all other trades as-is. You can always contact us here. Regards, Lee Let's Grab That Cash!

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