Trade Update - OSTK

Trade Update - Overstock.Com (OSTK) Hello Smart Option Sellers! Well, pretty interesting stuff with OSTK. On Friday, we put out a recommendation to sell put options on OSTK. I had mentioned that with the new bitcoin futures that were to begin trading last night (Sunday 12/10) on the CBOE, we could potentially see a large move in OSTK. Well, even before the bitcoin futures kicked off last night, a report came out after Friday's trading that Morgan Stanley had taken an 11% stake in OSTK, putting it the second largest shareholder behind the company's founder Patrick Byrne. That statement pushed OSTK's price up $4 per share in the after-market. On the open this morning, OSTK is currently up $6 per share, putting its price at $51. All this happened even before the futures market opened, which interestingly held its ground and moved higher most of the session last night. So, in a nutshell, OSTK has had two good news events to push its share price higher this morning. How does that bode for our new put-sell play? The good new is - we were able to get some sales off on the put option before the stock moved higher. In fact, the stock had dropped at least $1 per share as we were entering the play. This allowed a number of Smart Option Sellers to get filled between $.25 - $.30 per contract on Friday. We will take the official mark at $.27 per contract. Here's what we did: Sold (sold-to-open) the OSTK March 2018 $15 put options for an official sale price of $.27 per contract as an opening transaction (sold-to-open). I understand that some of you may not have been able to get into this trade, as the option price moved lower once we put in our sell orders. This occurred even as the stock price moved lower. One thing we need to understand in order to be smarter option traders is that if the price of the stock starts to move lower, then the put option price should move higher. We need to be very methodical and smart with our orders, because if we see the stock start to drift lower, that's our signal that the put option prices should move up. We don't need to be in such a rush to sell the put option at that point at whatever prevailing price there is, as that could cause us to sell it at undervalued levels. So my advice moving forward (and has always been) - be cool when you place your order. See which way the stock is moving. If it's moving down, then there's a good chance the option price will pop, allowing us to get a better sale off. For now, with the stock up $6 per share, the $15 put option will be under pressure and it will be hard for the rest of us to sell it at the minimum price of $.25 per contract. Let's see how it plays out, and if the stock continues to be well supported (which I think it will), I may have us sell a higher strike price in order for the rest of the gang to get onboard, especially if the bitcoin futures stays strong. That's it 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!

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