Healthcare Is Selling Off - Time To Jump In!
New Trade - Eli Lilly (LLY) Hello Smart Option Sellers! Welcome to February! How about that news of Amazon, Warren Buffett & JP Morgan all getting together to start their own health insurance company? It certainly took the healthcare industry by surprise, and just like when Amazon bought Whole foods, the stock prices of all the major health insurers have taken a wallop in the last two days. And the pharmaceutical companies haven't fared much better, considering President Trump started talking about high drug prices in his recent SOTU speech. Anyway, let's see if we can hop into a new trade on a pharma stalwart. LLY released earnings the other day, and coupled with the recent Amazon news, has sent its stock price down about $6 per share since last week. Here's the current chart. LLY is trading near $81.70 as I type. That is a large move for one of the most popular and stable pharmaceutical companies in the world. Although the stock is above our $50 price threshold that we try not to engage with, we will make exceptions from time to time. If this price range is above your comfort zone, you can opt to sell less contracts, or not get involved at all. Here's what you can choose to do: Sell (sell-to-open) the LLY July 2018 $60 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 $.20 bid/$.34 offer, so let's see if the market will play with us and maybe squeak it out. No guarantee that we'll get filled, but let's give it a try. The market is showing a little bit of turbulence of late, and the volatility (VIX) has finally crept back into the market a bit. Let's be patient here, as we could see more downside action. If we do, the put options are sure to pop in price a bit. Get those orders in now and let us know how you do. That's all for now. Continue to hold all other positions as-is and continue to work all other unfilled trades as-is. Continue to contact me here Regards,
Lee Let's Grab That Cash!