Friday Update

Friday Update

Hello Smart Option Sellers! Intel Corp. (INTC) I've been receiving more fill prices from Smart Option Seller members on the new Intel put-sell trade. Due to the good pull-back in the market yesterday (which is now rallying back, of course!), many of you were able to sell this put option at better prices than our official mark of $.25 per contract. Fill prices came in anywhere from $.26 - $.31 per contract yesterday. Great work! Even today, prices are still viable for good fills if you have not entered this trade yet. Verizon (VZ) Our VZ put-sell position is still viable too, at even better prices than last week. This position is currently trading near $.40 per contract, which is higher than our official sale price of $.28 per contract. See, being patient can pay off at times. You might be thinking: "wait, don't we want the put option price to go down after we've entered the trade?" Yes, exactly. That way, we can buy it back cheaper and lock in a profit. But sometimes the option price can move higher (sometimes by a lot), allowing newer (and older) members a chance to get in. But don't let that price increase scare you away. Option prices fluctuate higher and lower, just like stock prices. And we can even find ourselves underwater on occasion before the trade turns around. VZ stock is scraping along 18 month lows right now at approximately $44.45 per share. Our strike price is at $39 per share, which still gives us another 12% cushion for more downside movement. Also, the $39 level is sitting on very strong support, based on the charts. It hasn't been below $39 for an extended period of time since mid-2011. For those of you who might be thinking - what if it breaches the $39 level and moves lower? That's a scenario we could face with any position. The decision at that point is whether we feel confident that the stock will keep moving lower or if it will bounce. Would you feel good about buying VZ stock at $39 per share and holding for the long-term? It's the #1 cell carrier in the U.S. and a great play, in my opinion. There is always a risk-management plan to take if we need to, and most likely that would be to "roll" the position to a more conservative strike. We don't need to worry about that now, and if the time comes to take action, I will certainly let everyone know what to do. But the biggest decision you need to make when executing a put-option selling strategy (whether it's with me or on your own) is whether you would be comfortable owning the stock at the strike price level chosen. If you are, then it's all good. Every put-sell trade that I recommend is on quality stocks which we could potentially buy at good levels. Sometimes they are at levels that haven't been breached in years. I like trying to buy stocks at long-term support areas. But even then, the stock can always move lower. That's a risk we all take when investing in stocks. No pain, no gain. The good thing is that I'll be here guiding you every step of the way to keep that pain to a minimum. That's all for today. Continue to hold all trades as-is. Have a great weekend! You can always contact us here Regards, Lee Let's Grab That Cash!

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