New Trade...Let's Go!
New Trade! Hello Smart Option Sellers! As many of you know, we as put-sellers love when quality companies get knocked down temporarily because of a perceived bad news event. In this case, that quality company is Oracle Corp (ORCL) which released earnings yesterday after the close. As of this morning, the stock is down close to $5 per share near $47. When a company like ORCL drops that much that quickly, we need to strike. So, if you're keen on taking a shot at ORCL, this trade may be for you. Here's what you can choose to do: Sell (sell-to-open) the ORCL September 2018 $35 put options for a limit sell price between $.25 - $.30 per contract, GTC, as an opening transaction (sell-to-open). Currently, this put option has a market of $.26 bid/$.34 offer, putting its fair value right near $.30 per contract. In the instructions above, I give you the choice to try to sell the put option between $.25 - $.30 per contract. This means you should place your sell order somewhere within that range. You do not need to sell right at the prevailing bid price ($.26). Try to get better than that if you can. The expiration length on this trade is at the tail end of how far I typically like to go (six months), but in order to get a decent price while still giving ourselves a nice cushion for error and more downside movement, we needed to pick September 2018. With the stock price at $47.10 currently, it gives us another 25% of cushion above our strike price of $35. That's all for now. Get those orders in there and let us know how you do. Continue to contact me here Regards,
Lee Let's Grab That Cash!