Starting 2018 Right - Two New Trades!

Hello Smart Option Sellers! Happy New Year! The stock market is starting 2018 right where it left off in 2017 - moving higher. But that won't stop us from hitting the ground running with two new put-sell trades. So let's get to it. Hack Cyber Security ETF (HACK) An old friend of ours, we've already played HACK successfully two times in 2017 and we're going in again for 2018. One of the themes here is that you'll see us constantly recycling old trades over and over again. Why not, right? If it works for us, we'll continue to go back to it. Cyber security is no joke and it's a major and constant threat to all businesses world-wide. I don't foresee that threat going away anytime soon, so having exposure to an ETF that holds the major cyber security firms is a great investment. HACK holds cyber security stocks such as Symantec (SYMC), FireEye (FEYE), Palo Alto (PANW), and Fortinet (FTNT), to name a few. It's a must for all investors to have exposure to a piece of this sector. So here's what you can choose to do: Sell (sell-to-open) the HACK June 2018 $26 put options for a limit sell price of $.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Currently, the market for this put option is $.25 bid/$.85 offer - clearly very wide. That's probably just a function of it being the first trading day of the year and everyone could be a little sluggish right now. The real market is probably more like $.25 bid/$.40 offer. Let's make sure we start the year right and get the best possible sell prices as possible. I would suggest entering your trade at an offer price of $.30 per contract to start to see if anyone will bite. If not, then you can adjust your sale price down to $.25 per contract. Why sell at $.25 if you could possibly sell it at $.30 per contract. Right? Let's be smart and get the most we can. Right now, HACK stock is trading at $32 per share, which would give us a $6 per share cushion, or an 18.75% buffer. Big Lots (BIG) You know I'm a big fan (pun intended) of the discount retailers. Why? Because of the sheer fact that they offer such low prices on items that we need for our everyday lives. Stores such as Wal-Mart (WMT), Target (TGT), Five Below (FIVE), Dollar General (DG) serve such a great need in our country with their low everyday pricing. We've taken put-sell positions in all of these stocks over the years, and we're going in today with BIG. Here's what you can choose to do: Sell (sell-to-open) the BIG April 2018 $37.50 put options for a limit sell price of $.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Currently, the market for this put option is $.20 bid/$.35 offer - so let's see if we can get some sales off at $.25 per. Not sure if we'll get filled, but let's see how it plays out today. Right now, BIG stock is trading near $55.85 per share, which would give us an $18 per share cushion, which equates to roughly a 32.8% buffer. If you feel like taking on a touch more risk, and are comfortable with this stock, then you can opt to consider selling the $40 put option instead. If we can't officially sell the $37.50 put at our price, we may adjust to the $40 put ourselves. That's all for now. Get those orders in and let us know how you do. You can contact me here with your results. Regards,

Lee Let's Grab That Cash!

Recent Posts


©2016-2020 Smart Option Seller                Lee Lowell