Time To Take Profits And Trade Adjustment Update
Hello Smart Option Sellers! Happy June! It's time to ring the register! That's my phrase for us when we take a profit. Intel (INTC) We're currently holding a put-sell position on INTC that has reached the profit zone area of my "80% Rule". What is that? It's when the put option has deteriorated 80% from the original price that we sold it for, allowing us to buy it back to lock in a gain. For those of you new to the game, option trading can be initiated from the sell-side first, which is what we do. We sell the put option and then we look to buy it back down the road at a cheaper price. You never need to wait until expiration to make a move. Here's what you can choose to do: Buy back (buy-to-close) all of your INTC August 2017 $28 put options for a limit buy price of $.05 per contract or cheaper, GTC, as a closing transaction (buy-to-close). Currently, this put option is now offered at $.05 per contract, so we should have no problem getting filled at our price of $.05 per. Our original entry sell price for this trade was $.25 per contract back on March 27, 2017. It has now decayed down to $.05 per contract. That's an 80% decline ($.20/$.25 = 80%). This is when we take a profit according to my 80% Rule. Get those orders in there now and let us know how you do. *Reminder: this trade is only for those members who currently hold the put-sell position. This is not a new trade to enter. If you just joined us recently, you will not be a part of this trade. Trade Adjustment Update Alcoa (AA) We made an adjustment yesterday to our AA put-sell trade that we've been working. We swapped the strike prices by going from the $20 strike to the $21 strike. I was sure we'd be able to sell this put option for the recommended price of $.25 per contract, considering AA stock was down by $1 per share at the time. But wouldn't you know it, as soon as I sent the alert out yesterday, AA stock rallied all the way back, putting downward pressure on the put option price. Hence, we were not able to get filled yet. Continue to keep working this trade "GTC". Let's hope AA stock will oblige and maybe give a quick pop lower. That should be enough to get the put option price back up. That's all for now. You can reach us here. Regards, Lee Let's Grab That Cash!