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 stay at stocks priced $50 & under), this represents a great opportunity. With the big gap down in these stocks, this is the opportune time to strike. A little panic sets in and typically pumps up the option prices to higher levels than normal. This puts extra dollars in our pocket when we sell them. That's a good thing! Right now, the $60 put option has market of $.36 bid/$.44 offer, so we should have no problem getting filled somewhere in the middle of my recommended range. In fact, you should be able to do better. Remember, when placing your order, make sure to look at the current bid/ask price so you know what price to offer. Don't sell at the prevailing bid price. Place your order in the middle of the range to give yourself an opportunity to get the best sell price. If no one bites on your offer, you can certainly lower it. Give yourself a chance to get a good price. A word of note: since this is a higher priced stock than we normally look at, stay within your comfort zone. That's all for now. Get those trades in there and let us know how you do. 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!