New Trade!
New Trade! Hello Smart Option Sellers! I've got a new trade for everyone. It's one that we successfully played years ago in The Instant Money Trader (my previous put-selling service), and now it's back in prime position for more action. Supervalu (SVU) SVU is a grocery retailer and wholesaler established in 1871 and has over 3,400 stores between the U.S. and abroad. Back in July 2012, we sold put options on SVU using the $1.50 strike. Yes, $1.50! The stock was trading near $1.75 at the time, and it was the cheapest it had been since 1977. At that point we had successfully nailed the bottom and the stock steadily rose until it topped out near $12 in April 2015. SVU started another descent from April 2015 until finally bottoming out between late February to late April of 2018. It also underwent a reverse 7:1 split back in August 2017. On a split-adjusted basis, SVU bottomed out in April of this year, practically where it bottomed out in 2012, and has started to rise again, It has also crossed back above the ever-important 200-day moving average, which gives me lots of confidence to enter this new put-sell play. See the chart here. You can see the solid move above the 200-day average which is the red line on the chart. Another reason why I like this play now is based on the sheer fact that SVU can always be seen as a quality potential takeover target. With the grocery wars starting to heat up against Amazon, SVU could be the perfect way for some of the larger grocery chains to bolster their line-ups. I'm not predicting this will happen, I'm just saying it's a possibility. Anyway, if you agree with my assessment on SVU, here's what you can choose to do: Sell (sell-to-open) the SVU October 19, 2018 $10 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 market of $.20 bid/$.35 offer, so we'll be trying to sell it for $.25 per. Not sure if we'll get filled today, but let's see if the market bites and wants to trade with us. If not, we may alter the strike price in the next day or two. As of now, SVU stock is right near $20.25 per share, so this trade would give us a full 50% downside cushion between the stock price and strike price. That's incredibly conservative, even by my high standards! As mentioned above, if we don't get filled on the trade, we may alter the strike, which would still give us a massive cushion. 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. Contact me here Regards,
Lee Let's Grab That Cash!
