Another New Trade!
Another New Trade! Hello Smart Option Sellers! One of the best scenarios for us put-sellers is when a solid blue-chip company has a stumble during earnings season and the stock gets temporarily hit to the downside. If you've been with me long enough (even during the Instant Money Trader days), you've probably heard me talk about this all the time. This exact scenario is what we dream about, and earnings season gives us an opportunity four times a year for it to happen. And it happened again to a great company yesterday. GlaxoSmithKline (GSK) Wait, didn't we just close out a profitable play on GSK ten days ago? Yes we did! And we're going back for more! GSK released earnings yesterday and the stock dropped $2.30 per share. That's a big move for a company like GSK. And it's down almost another $1 per share this morning, currently trading near $37.35. That's more than $3 lower than where it closed a few days ago. Here's the current chart of GSK. We need to jump on this opportunity right now and enter a new put-sell play. Here's what you can choose to do (read through the entire message before placing your order!): Sell (sell-to-open) the GSK March 2018 $32 put options for a limit sell price of $.20 per contract or higher, GTC, as an opening transaction (sell-to-open). With the stock currently trading at $37.35 per share, the $32 strike price gives us another $5 per share of cushion, which is a drop of 15% from current levels. Plus, the stock is very oversold on the charts. I can see a good snap-back rally happening quite quickly. We typically like to take put-sell trades that have a 15% - 30% cushion, but with a blue-chip like GSK, and the drop it's already had, I feel really good about this one with only the low end of 15% cushion. Currently, this put option has a market of $.20 bid/$.30 offer, so we can for sure get some off at at $.20 per. Here's my thinking on the strike price and option premium: I know $.20 per contract is lower than we typically like to get, and I was thinking of moving up a strike to the $33 strike level. But, that level wouldn't get us to my minimum cushion of 15%. So, if you feel that you want to take on a little more risk, feel free to sell the $33 strike if you'd like, but make sure you sell it between the current bid/ask price when you enter your order. If you're going to stick with our official trade and sell the $32 strike, try to place your order at $.25 per contract to start. You may get it. If not, then you can move it down to $.20 per contract. The stock is fluctuating, so by the time you enter your order, maybe we'll be lucky enough to sell it at $.25 per. Get those trades in there now and let us know how you do. Housekeeping Here are the notes I've been mentioning this week. The Warren Buffett report that I've had for sale on the site, and which I include a link at the bottom of every alert, will be going up in price from $10 to $49 this Friday at 5pm EST. If you have not purchased it yet for the $10 price tag, now's your last chance. Also, please have a look at my Blog that I update quite frequently. It has my thoughts on various investing items and answers to many questions about options trading. It's a great way to get more insight into what I'm thinking and what people are asking about. Have a look from time to time if you want, and please help me spread the word. You can share each Blog post to your own Facebook or Twitter page by clicking on the social buttons at the bottom of each post. You can make comments, and please, tell your friends about us too by forwarding the link to anyone you feel would benefit. This will help the Smart Option Seller gain traction and recognition in the online option's world. My goal is to raise our visibility and let others know about the great things we're doing here. All help is appreciated! Thank you! That's all for now. Continue to reach us here Regards, Lee Let's Grab That Cash!