New Trade!

New Trade!

Hello Smart Option Sellers! It didn't take long to figure this one out. Lowe's (LOW) I mentioned in yesterday alert that Sears will now be selling their Kenmore line of products through Amazon's website. This is another sector in which Amazon is trying to put all other retailers out of business. Don't get me wrong, us as retailers are benefitting greatly from Amazon's presence in the world. We get to buy anything we need from the click of a mouse and the goods are delivered right to our doorstep, sometimes the very same day. In addition to that lazy man's way of shopping, we also get incredibly competitive prices on those products, too. But not everything that Amazon sells will put others out of business (yet!). And that applies to the home-improvement stores such as Lowe's & Home Depot (HD). If these stores only sold Kenmore products, then they'd have a huge problem on their hands. But these stores are so diversified with their goods and product lines, that I just can't see it affecting the bottom-line too negatively in the near future. If anything, it may force LOW & HD to lower their prices a tad on their Kenmore products. But we won't know that for awhile. To sum up, I'm seeing this as a knee-jerk overreaction to another Amazon move, just like what happened in the food & grocery sector a few weeks ago. With that said, we're going to place a new put-sell trade on LOW in a bit further out expiration month which helps give us an even extra layer of cushion for any more unexpected downside movement. If you agree with my outlook, here's what you can choose to do: Sell (sell-to-open) the January 2018 LOW $45 put options for a limit sell price of $.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Currently, LOW stock is trading at $73.50 per sha