New Trade!
New Trade!
Hello Smart Option Sellers! Let's kick off the weekend with a new trade. Southern Co. (SO) One of the best well-known electric companies, especially in the Southeast, SO is a solid play in the utility sector. I like the slow and steady pace of utility companies, the dividends they offer, and the buffer they can give during times of market unrest. SO stock has recently come off about $5 per share (see here), for reasons which I can't really find or justify for such a quick drop. There was news that it will be transitioning one of its clean coal plants to natural gas, which could cost them money on the deal, so I'm thinking that might be part of the concern. Also, as interest rates rise, utility companies become less attractive. To me, potential rising interest rates won't have enough of an effect for the few short months we will be involved with this trade. So, with that potential plant transition and rising interest rates now factored into the stock price, it has moved the company into oversold territory, making it a perfect time to jump into a put-sell trade. Here's what you can choose to do: Sell (sell-to-open) the SO November 2017 $39 put options for a limit sell price of $.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Currently, this put option has a wide market of $.23 bid/$.36 offer. We are trying to sell it for $.25 per contract or higher. This means you can place your offer price at $.30 per contract to start, and incrementally lower it down to $.25 if no one bites at first. This is the best way to get the best sale price. "Work" your offer price if you have the time and means. You don't have to immediately place your offer price at $.25 right off the bat. Negotiating works in the options markets. Bottomline, do not sell for anything less than $.25 per contract. If we can't get anything done at our price, we may look at selling the $40 put option strike instead next week. Get those orders in now 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. That's all for now. Have a great weekend! Regards, Lee Let's Grab That Cash!
