Let's Try Again On FIVE...And Friday Q&A
Let's Try Again - Five Below (FIVE) Hello Smart Option Sellers! As the market kind of churns itself, with plenty of fits and starts in both directions, we continue to play the waiting game with our put-sell positions. One of the biggest allies on a put-seller's team is a market that goes nowhere, eating up the time until expiration. Why is this good? Because each day that the stock stays away from the option's strike price, the faster the option price will decay, making it easier to buy it back for a profit. You can't stop time from marching on, and coupled with a market that can't make up its mind which way to go, only helps our cause. With that, we continue to hold our positions as-is and let time decay work its magic. In the meantime, we're going to try again on the buy-back order on FIVE. The company will be releasing earnings next Wednesday (March 21) after the close, so I figured we might as well try to close it down and lock in our gains. Although I'm not concerned about the position moving against us, considering we have $30 of cushion between the current stock price and our strike price, I still would like to try and close the trade. So, here's what you can choose to do: Note: If you have this put-sell position in your account, then you will execute the buy-back order today. If you don't have the position, then you can disregard these instructions. Buy back (buy-to-close) all of your FIVE May 2018 $39 put options for a limit buy price of $.05 per contract, GTC, as a closing transaction (buy-to-close). Once again, this put option is still offered at $.10 per contract with no bid showing.