New Trade! Hello Smart Option Sellers! No time to waste, especially since the market closes early today at 1pm EST. We're jumping into a new put-sell trade. CVS Health (CVS) Amazon (AMZN) is trying to shake-up yet another industry - the pharmacy & prescription drug market. With its recent purchase of PillPack - a mail-order prescription service, AMZN wants to continue its domination of the world! Try as they might, it doesn't exactly happen overnight, nor does it always work. We heard about the death of retail brick & mortar for the last few years, and yes, some stores have gone out of business, but others have actually flourished recently. Drug retailers such as CVS, Walgreens (WBA) & Rite-Aid (RAD) got crushed very recently due to this recent news. All three stocks saw their prices decline big time just the other day. And you know how I love it when that happens! First off, the drop in these stock prices is a gift for us. Second, in the short time-span that we'll be in this trade (4.5 months at most!), the large cushion will insulate us, and third, buy-outs like PillPack take time, especially in the highly regulated drug market. This will be a great trade for us. Currently, CVS is trading near $64.70 per share. You can view the chart here. The trade we're about to take will give us a solid $20 cushion (30%) below the current stock price. I don't know about you, but I love shopping at CVS. Their coupons and rebate offers are amazing. If you agree my assessment, here's what you can choose to do: Sell (sell-to-open) the CVS November 16, 2018 $45 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 $.26 bid/$.33 offer, so we should be able to get some right off the bat. I'm gauging fair value around $.29 per contract, so you should start your offer price in that range and give it a few minutes to see what happens. If the stock continues to drop a bit, the buyers will come out and scoop up our offers. Have a little patience! In the end, do not sell for anything less than $.25 per contract. Get those orders in now (shortened session) and let us know how you do. If you don't get filled today, make sure your order is working "GTC". That's all for today. Have a great holiday tomorrow. Continue to hold all other positions as-is. Contact me here Regards,
Lee Let's Grab That Cash!