New Trade! Hello Smart Option Sellers! Let's start the weekend with a new trade. Overstock.Com (OSTK) OSTK is an online retailer of basically everything and anything. Yes, it has to compete with all the other online retailers (Amazon too) but there's a few reasons why I like OSTK: 1. It has been in business since 1997 and went public in late 2002. It has survived alongside Amazon and continues to put up decent earnings results. 2. Many of its items are close-out products, which typically means you can get some really great price deals. 3. OSTK has been recognized by the Web Marketing Association for the sixth year in a row for the best retail mobile app of 2017. One of the coolest features of their app is that you can use virtual reality (VR) with their latest version to look at products in 3-D and life-size to see how they will fit in your home. 4. Lastly, they have involvement with Bitcoin! (which by the way hit $19,600 yesterday). They have been one of the earliest adopters of bitcoin as a form of payment in 2014 for their products. They are also working on an initial coin offering (ICO) called tZero which will, as I understand it, will help create a system to buy and sell other ICOs which can then be used to purchase those companies once they become publicly available. OSTK has had a rocket move upwards since late summer as more word got out about their cryptocurrency involvement. The stock moved from $20 per share to $65 per share very quickly and has now seen a good $20 pull-back to its current level of $45 per share. Here's the current chart. The stock seems to have found a base between $42 - $47 per share, with the 50-day moving average sitting at roughly $42. I believe this current sell-off and shake-out may have run its course and it's time to step up and sell some put options on this retailer. The good thing is that we're going to have a HUGE cushion between the stock's current price and our strike price. There may be a little more risk in this trade, only because OSTK operates in the retail shopping sector which is always prone to an assault by Amazon. But, it hasn't been taken out yet, and I don't believe it will in the next few months while our trade will be open. Also, with bitcoin futures being launched this Sunday night by the CBOE, we could see a sell-off in the price of bitcoin which might translate into a sympathy move lower in OSTK. On the other hand, it the futures rocket higher, OSTK should surely move up as well. If you agree with my assessment and feel this trade might be right for you, here's what you can choose to do. You could also wait until Monday morning if you'd like to see how the futures play out, but I can't guarantee prices will be viable then. Officially, we're getting in today. Sell (sell-to-open) the OSTK March 2018 $15 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 $.30 bid/$.40 offer, so we should be able to sell for a higher price than $.25 per contract right off the bat. My advice is to place your order at $.35 per contract to start, and if no one bites, then you can lower your offer price and sell at $.30 per contract. Bottomline, do not sell for anything less than $.25 per contract. With the stock currently near $45 per share, we'll have a tremendous $30 per share cushion above the strike price. This represents a huge 67% spread between the two levels. That's music to our put-selling ears. So, get those orders in there now and let us know how you do. That's all for now. Continue to hold all other put-sell positions as-is. Check the Current Portfolio below for updates & instructions. You can always reach us here
Regards, Lee Let's Grab That Cash!
Current Portfolio 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. 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 no enter any order unless the current option price is at, or higher, than the official recommendation. If you are unsure or have any questions, please ask us!