Trade Update - EMR
Trade Update - Emerson Electric (EMR) Hello Smart Option Sellers! We placed a new put-sell trade on Friday for EMR that did not get filled, unfortunately. The stock started to rally about 30 minutes after I issued the trade alert (and continued to rally the rest of the day) which kept downward pressure on the put option prices. Hence, we didn't get filled. But so far today, the stock has given up those gains and has moved right back to where it was trading on Friday when I issued the alert. As it stands, the market on the put option is $.15 bid/$.25 offer. The instructions for today are to change your existing order from GTC to "Day-Only". I don't want us holding this trade open as a GTC order as EMR releases earnings tomorrow before the bell. Depending on which way the stock moves once the market opens, I may or may not have us try again. But for now, note the new instructions below. And remember, the order is now a "day-only" order, which means it will cancel out at the end of today's session. DO NOT leave it open as a GTC order. I'll send another alert out tomorrow with an update. Here's what you can choose to do: Sell (sell-to-open) the EMR September 21, 2018 $45 put options for a limit sell price of $.25 per contract, Day-Only, as an opening transaction (sell-to-open). Maybe if the stock keeps dropping today, we'll see some fills. Upcoming Earnings We currently have a put-sell position on Merck (MRK) that is doing very well, and we are very close to my "80% Rule" threshold. MRK also releases earnings before the bell tomorrow and I don't expect any negative surprises to cause the stock to have a big drop. If anyone feels differently and thinks MRK may have a downside surprise, your best bet would be to buy a weekly put option that expires this Friday May 4th. You could look to buy the May 4, 2018 $56 put options for a nickel. A very cheap way to get some extra cushion as a hedge trade. This is totally optional and only for today. Also, Kellogg (K) reports before the bell on this Thursday May 3rd. I've talked about this position (and GIS) recently as two stocks that have been in a downtrend for a decent period of time and we have to keep an eye on them a bit more. We still have a good cushion on our K position, but as far as a hedge trade, there's nothing that I would suggest for it. Continue to hold these positions and all others as-is for now. That's all for today. Be back tomorrow with an EMR update. Contact me here Regards,
Lee Let's Grab That Cash!