Market & Position Update
Market & Position Update Hello Smart Option Sellers! Happy Friday! Wow, June 1st already. Time is really flying. The stock market is getting quite a boost this morning. The jobs numbers/unemployment report has made market participants very happy, and has pushed all the indices higher as I type, especially the Nasdaq. That's great news for all of our existing put-sell positions. As stocks go up, put option prices go down. This helps move us into profitability even faster. At the moment, all of our put-sell positions are in the green, except for our stubborn little friend General Mills (GIS). The stock is stuck between $42-$43 per share and is flirting with popping above the 20-day moving average (red) trend line on the charts. Take a look here:
The good news for us is, the longer the stock meanders, the faster the option price will decay, and we now only have about 7 weeks until expiration. We're going to keep holding the position and wait it out. Basically, we're in a race between whether time will run out (expiration day) or GIS falls below $40. I'm not saying GIS will fall below $40, but that's our line in the sand. If it can rally from here, then it'll make the trade so much easier for us. As long as the overall market continues to move up and there's not much damaging news for either GIS itself or the sector as a whole, I thing it's going to end well for us. Not much else happening this week. Sometimes we play the waiting game with our system. Might as well go outside and enjoy the weather. I've got a few other stocks on my radar for potential put-sell plays, but they haven't triggered yet. If they do, you'll hear from me ASAP. That's all for now. Continue to hold all other positions as-is and have a great weekend! Contact me here Regards,
Lee Let's Grab That Cash!