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 share, putting it a solid $28.50 per share above our strike price. That would require LOW to drop by another 38% before it gets to that $45 level. I like that kind of safety and cushion. Right now, the $45 put option has a market of $.23 bid/$.29 offer, so we'll be trying to sell near the middle of that range with our $.25 or better offer price. Remember, you don't need to place your offer price at $.25 right off the bat. You can start at $.28 or $.27 to see if someone bites. Be cool about it. If there's no movement, then you can work it down to $.25 if you have to. Do not sell for anything less than $.25 per contract. Note: as with any of our plays, you are always welcome to choose any strike or expiration date that fits your needs. We have many members who take the stock I'm recommending and choose their own put options to sell. If potentially buying LOW at $50 is a better deal in your mind, then you are more than welcome to sell the $50 put option if that meets your financial goals and risk requirements. Officially, we'll be selling the January 2018 $45 put option because it gives us extra cushion and still a decent payout. I know it's a bit further out in time than we like to go, but safety comes first. Get those trades in there now and let us know how you do. You can contact us here That's all for today. Continue to hold all other trades as-is. See the Current Portfolio below for current prices & instructions. Quick note on the Current Portfolio - if you are a new subscriber and don't have a position yet on any of our trades, make sure you enter your order at the original recommended sell prices. Do not enter any order at current prices unless it's higher than the official recommendation. If you are unsure or have any questions, please ask us! Regards, Lee Let's Grab That Cash!