Trade Update
Trade Update
Hello Smart Option Sellers! Alcoa (AA) Finally! With this current blip down in the market, we're finally filled on the AA put-sell trade we've been working for a couple weeks. Persistence pays off. For those of you who had this order working "GTC" (good-til-cancelled) at $.25 per contract, then you should be filled as of this morning. For those of you who are either new members or did not place this order yet, you can still do so at current prices. Here's what we did: Sold (sold-to-open) the AA October 2017 $21 put options for an official sale price of $.25 per contract as an opening transaction (sold-to-open). Tech Pull-Back We continue to see selling in the market, especially in the tech sector. I mentioned this in the last alert and commented about the possibilities of getting into such stocks as Apple (AAPL) or Facebook (FB), if those stocks interested you. I've also mentioned in the past that I would offer advice on trades for stocks that I don't consider "official" trades for us, but might be right for some of you. The reason why they're not official is because they don't meet all my requirements. Considering this current tech sell-off, you might want to consider looking at selling the December 2017 Apple $80 puts and/or selling the December 2017 Facebook $65 puts, both trading around $.10 per contract. With Apple stock currently at $143 per share, selling the $80 put would offer a 44% cushion below the stock price, and with Facebook stock currently at $148 per share, selling the $65 put would offer an even larger 56% buffer below the stock price. Those are extremely healthy cushions for such incredible stocks. The questions you should ask yourself are: 1. Can these stocks lose about 50% of their value in the next six months? 2. If they do, would I be happy to buy them at that price? In my opinion, there's no way that either would fall that far in six months. And if they did, think about the opportunity ahead of you once they start moving back up. On the flip-side, always remember the risks though - stocks can fall farther than you can imagine. But, no one became rich without taking some risks. These are not high fliers. These are well-established quality stocks, which makes them even more attractive. Each of these put options are selling for about $.10 per contract. That's small, but only because the chance of the stocks falling that far are very slim. It won't make you rich overnight, but then again, where else can you get paid upfront to buy quality stocks 50% below their current values. Nowhere! If you do decide to sell these put options, make sure your commissions will not cost more than what you receive, as that would defeat the purpose. And of course, make sure these trades fit within your risk tolerance and comfort level. Don't forget, these are merely suggestions. They are unofficial and optional trades. That's all for now. Let us know if you decide to get into these optional trades and if you've been filled on the AA put-sell position. You can contact us here Continue to hold all other positions as-is. See the Current Portfolio below for current prices & instructions. Regards, Lee Let's Grab That Cash!