Trade Update & Profit Time

Trade Update

Hello Smart Option Sellers! Lots to talk about today. Lowe's (LOW) We placed a new put-sell trade on Friday for LOW. This was in response to the big stock drops in the home improvement stores because of Amazon's new initiative of selling Sear's Kenmore line of products through their website. The thinking of the market is that Amazon is going to put another brick & mortar type of retailer out of business. I didn't agree with that thinking and knew that the stock drops were a knee-jerk reaction and unfounded. Hence, we sell put options on the premise that these stocks should bounce back relatively quickly and allow us to make a quick profit. Well, LOW stock did bounce back on Friday, ending the day about $1.30 higher than where it closed the day before. When stocks rally, put option prices drop. Unfortunately, the stock rally was a bit too strong for us and didn't allow us to get filled on our put-sell trade. At this time, we will continue to work the order at a sale price of $.25 per contract. I want to give it a few more days to see where the market shakes out on this story. If the stock drops a bit, we may get filled. If it looks like the downside for the stock is done, then we may alter the strike price in order to get a foothold into the trade. I will alert everyone if we make that move. Keep your order working "GTC" at $.25 per contract. The order is listed below for your reference. Sell (sell-to-open) the January 2018 LOW $45 put options for a limit sell price of $.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Profit Time We currently have two open put-sell positions right now on GoodYear Tire (GT) and Alcoa (AA). Both of these positions have decayed down to the lowest levels ($.05 per contract) that can be traded on the exchanges, and has reached my "80% Rule" threshold. The 80% Rule states that if the put option price has decayed 80% from our original sale price, we buy it back and book the profit. Although I have not put out official recommendations to buy back these put options to lock in a profit, some of our members have gone ahead and bought the trade back on their own (very smart!) at $.05 per contract. So, we're going to put in some buy-back orders now to lock in the gains. GoodYear Tire (GT) Note: If you have this put-sell position in your account, then you will execute the buy-back order today. If you don't have the position, then you can disregard these instructions. Here's what you can choose to do: Buy back (buy-to-close) all of your GT October 2017 $24 put options for a limit buy price of $.05 per contract, Day-Only, as a closing transaction (buy-to-close). Currently, this put option has a market of no bid/$.10 offer, but has traded at $.05 recently. We'll be putting in a $.05 bid which I'm pretty sure will get hit and give us the fill. GT stock is currently at $35.20, putting it a solid $11.20 above our strike price of $24. This is why I'm confident we will get filled. Our original entry sell price for this trade was $.27 per contract back on May 22, 2017. Closing it out now allows us to end the trade early, a little under three months before expiration. Please note that this trade is not a "GTC" order. It is a "Day-Only" order. This means that the trade is good for today only, whether you get filled or not. If you don't get filled, you will have to manually re-place the order again tomorrow. I'm doing this because I don't want our $.05 bid sitting there GTC for all of the option market-makers to see it. Once they know our $.05 bid is good for the foreseeable future, they will play games with us and hold out from trading with us for as long as possible. If we pull our bid at the end of each day, they will be more inclined to open each trading day with a $.05 offer instead of the $.10 offer. If this happens, then we can immediately go in and buy the put option at the $.05 offer price. These are just the little tidbits of information you learn over time with regards to how to finesse the option players. Trust me, it works. When you enter your order with your broker, make sure to designate it as a "Day-Only" order. I will update everyone tomorrow if we need to place the order again. Get those orders in now and let us know how you do (if you are involved with this one) and I will go over the full results tomorrow. Alcoa (AA) The AA instructions are very similar to the GT instructions. Note: If you have this put-sell position in your account, then you will execute the buy-back order today. If you don't have the position, then you can disregard these instructions. Here's what you can choose to do: Buy back (buy-to-close) all of your AA October 2017 $21 put options for a limit buy price of $.05 per contract, Day-Only, as a closing transaction (buy-to-close). Currently, this put option also has a market of no bid/$.10 offer, but has traded at $.05 recently. We'll be putting in a $.05 bid which I'm pretty sure will get hit and give us the fill. AA stock is currently at $36.80, putting it a solid $15.80 above our strike price of $21. This is why I'm confident we will get filled. Our original entry sell price for this trade was $.25 per contract back on June 15, 2017. Closing it out now allows us to end the trade early, a little under three months before expiration. Also, note the "Day-Only" instructions. Get those orders in now and let us know how you do (if you are involved with this one) and I will go over the full results tomorrow. 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!