How About A New Trade
How About A New Trade
Hello Smart Option Sellers! Alcoa (AA) Let's see if we can get this thing going. We last played AA on June 15th when the stock was trading at $31 per share. We sold the $21 put options which gave us a $10 cushion, or approximately 32% of downside protection. Today, AA is trading at $45 per share, and we'll be looking at another $14 of cushion, or 31% downside room for error. I also like this trade because of AA's chart formation. It has recently popped through nine-year overhead resistance at $40 per share. Typically, when a stock breaks through long-term support or resistance, it usually keeps going in the new breakout direction (higher in this case). See the long-term chart of AA here . Although sometimes with chart formations like this, we can also see a move back to the area of the breakout, in this case that would be back to $40 before it starts to head higher again. So don't be surprised if AA moves a bit lower towards $40 before moving up again. In any case, we're going to jump into this new put-sell play on AA. Here's what you can choose to do: Sell (sell-to-open) the AA January 2018 $31 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 market of $.20 bid/$.30 offer. Let's see if anyone will bite on our $.25 offer. Remember, if you don't get filled right away, just keep your order working GTC. If the stock moves lower, as I said it could, it will pop the put option prices and you'll have no problem getting filled. Bottom-line, do not sell for anything less than $.25 per contract. Let us know how you do. You can reach us here 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 unless the current price is at, or higher, than the official recommendation. If you are unsure or have any questions, please ask us! Social Media Don't forget to follow me on Twitter or Facebook or the Smart Option Seller Blog, and read my posts and share with other people. Or, you can go to our website and click one of the Twitter or Facebook buttons that's at the top of every page. Let's make The Smart Option Seller go viral! Warren Buffett Report I continue to get good feedback on this new report, so I'll keep this notice going for the time being so everyone has a chance to see it. If you need the link again, click here to read about it. Regards, Lee Let's Grab That Cash!
