Trade Results - GSK
Trade Results - GSK Hello Smart Option Sellers! Happy Friday! Before we get to the trade results, remember, today's the last day to get the Warren Buffett report that I've had for sale on the site at its rock-bottom price. It will be going up from $10 to $49 today at 5pm EST. If you have not purchased it yet for the $10 price tag, now's your last chance. Also, I've just been featured on the Cashflow Ninja Podcast with M.C. Laubscher. You can listen to the interview here. Forward the link onto any of your friends who might enjoy it. And lastly, please have a look at my Blog that I update on our website. 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! Now, let's get to yesterday's trade results. GlaxoSmithKline (GSK) Well, we had no problem getting filled on the new GSK put-sell order yesterday. In fact, we did much better than originally planned. The whole pharmaceutical sector has taken it on the chin the last few days, including GSK, and that's why we were able to get in at better prices. The stock continued to drop throughout the day, which just made the put option more expensive as the day wore on. None of the stocks in this sector were spared, and I think much of it came on the heels of Celegene's (CELG) huge drop of $40 per share in the last few sessions. Stocks in the same sector tend to move together, and all the pharmaceuticals are getting knocked down. Bistol Myers (BMY), Eli Lilly (LLY), Pfizer (PFE), and even another one of our current holdings - Merck (MRK), are all dropping while the rest of the market goes up. But, you have to remember, these are the bluest of the blue chip pharmaceuticals. Are we going to get scared just because they have a pull-back? Heck no! Stay the course. There's a reason why we choose out-of-the-money strike prices - to give us a cushion against drops like this. Many of you might be thinking, why didn't we wait until the drop was over? Sure, I could've done that - if I was a fortune teller! Until you can show me your crystal ball to let me know when that is, we maintain our current method of making these trades. No one knows when a move is over until the move is over. Can't do anything about that. I hate cliches, but hindsight is 20/20. Anyway, let's go over what we did with GSK. Sold (sold-to-open) the GSK March 2018 $32 put options for an official sale price of $.30 per contract as an opening transaction (sold-to-open). This put option traded in a range of $.25 - $.36 per contract yesterday, with the majority going around the $.30 level. And this morning, with the stock falling a bit more, some of you can do even better if you haven't entered your order yet. On a side note, how about Google (GOOGL) & Amazon (AMZN)? Earnings were out yesterday and the stocks are up $61 & $100 per share respectively. Amazing! You can easily sell puts on those stocks $400 per share out-of-the-money. With both stocks currently trading near $1050, you can sell the April 2018 $650 puts on each. Think those stocks will fall $400 per share by April? I'm in no way recommending those trades, just merely pointing out the fact that they exist. Who's got the cajones to do it? Email me if you do! Let's not worry about any of our stocks dropping in price. Pull-backs are necessary and healthy for the market. That's all for now. Look for the Q&A alert later today after the close. I will talk about Bitcoin a little bit. That's all for now. Continue to reach us here Regards, Lee Let's Grab That Cash!