New Trade!

New Trade!

Hello Smart Option Sellers! I thought we'd have a quiet Friday today. Not so! There's been a pretty big shake up within the food & grocery industry this morning. Amazon (AMZN), which continues to try to dominate the entire world, has just decided to buy out Whole Foods Market (WFM) for $42 per share. This is roughly $9 per share above where it closed for trading yesterday and a 30% premium. This news is causing huge reverberations amongst all other grocery retailers including Target (TGT), Wal-Mart (WMT), Costco (COST), Kroger (KR), and even little SuperValu (SVU). They're all getting whacked this morning, mostly because the initial thinking is that with Amazon's new purchase, they will put everyone else out of business. Not so fast, I say. This is just a knee-jerk reaction, and one that I think is a great opportunity for us to enter a new put-sell trade. Wal-Mart (WMT) The king of all retail. Yes, it's true that Amazon is the king of all online retail, but WMT still remains the king of all physical retail. There are still millions upon millions of consumers who pass through WMT's doors every year. And, they've even beefed up their online presence as well. As long as WMT can match Amazon's online plays, and still draw the in-store crowd, WMT will not be going away anytime soon. So for that, we enter a new play. Here's what you can choose to do: Sell (sell-to-open) the WMT October 2017 $60 put options for a limit sell price in the range of $.30 - $.40 per contract, GTC, as an opening transaction (sell-to-open). WMT stock is currently trading at $73.70 per share, putting it down $5 per share from yesterday's close. Although the $60 strike price is above where we normally like to use for our trades (I try to st