It's Profit Time!
Hello Smart Option Sellers! Happy August! You know what that means - time for more profits! We've got two trades to try to lock in today, so let's get to it. Procter & Gamble (PG) 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 PG October 2017 $65 put options for a limit buy price of $.04 per contract or cheaper, GTC, as a closing transaction (buy-to-close). I've been watching this position over the past few days and have seen a pattern with its pricing. It starts out the day with a high offer price and as the afternoon drags on, the offer price comes down pretty hard. I'm extremely confident that we will have no problem buying this put option back at our price, but you need to have patience during the day. Currently, PG stock is at $91.20 per share, putting it a massive $26 above our strike price of $65. This is why the option has gotten very cheap. As of right now, the put option has a market of no bid/$.09 offer, but has traded at $.04 recently and finished yesterday with a market of $.01 bid/$.05 offer. So we know the option will at least be offered at $.05 by the end of the day. Since this option trades in penny increments (not all do), we'll be putting in a $.04 bid which I'm pretty sure will get hit and give us the fill. Heck, try putting in a $.03 bid first to see if you can get filled. Just have a little patience with this one. It willget done! Our original entry sell price for this trade was $.22 per contract back on May 4, 2017. Closing it out now allows us to end the trade in just under three month's time and about two and a half months before expiration. It's always smart to close trades before expiration. Buying it at $.04 will give us a profit of $.18 per contract. That's an 81.8% decline from our sale price of $.22 per contract ($.18/$.22 = 81.8%). The option price has also decayed down to my 80% Rule threshold, which is when and why we're taking profits. Kellogg (K) We also have a put-sell position on K. They release earnings on this Thursday August 3rd before the opening bell, so let's see if we can close it out for the win. It's gotten down to it's lowest level for which it can trade on the exchange ($.05). It doesn't trade in penny increments though like PG. For that reason, we'll only be able to hit the 75% threshold with the buy-back. No worries though, as a win is a win. 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 K September 2017 $55 put options for a limit buy price of $.05 per contract, GTC, as a closing transaction (buy-to-close). This put option currently has a market of no bid/$.10 offer, so we'll be putting in a $.05 bid. Let's see if we can get filled. We will hold this trade through earnings whether we're filled by then or not. Our original entry sell price for this trade was $.20 per contract back on May 5, 2017. Closing it out now allows us to end the trade in just under three month's time and about one and a half months before expiration. Buying it at $.05 will give us a profit of $.15 per contract. That's a 75% decline from our sale price of $.20 per contract ($.15/$.20 = 75%). If there's any changes to be made, I will alert everyone. Get those orders in now and let us know how you do. Continue to work all other trades as instructed and continue to hold all other open positions 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! You can always contact us here Regards, Lee Let's Grab That Cash!