New Trade! Hello Smart Option Sellers! I have another new trade for everyone, this one also using an old friend, just like our recent Intel play. Gap Inc. (GPS) Yep, hopping into "ole reliable". In 2017, we played GPS profitably four times. This will be our first attempt in 2018. Why now? Because the charts are telling me to! Here's the current chart. I rely on my charts to give me the green light more than any other reason. Of course I check the fundamentals, but I believe all that information is always reflected in the charts. With the stock hovering near $31 per share, we're going to aim for a trade that has a solid 32% cushion above the strike price. GPS releases earnings the third week of August, so we have some time before needing to watch for an update on potential movement. This company has been very good to us and I don't see it disappointing this time around, either. Here's what you can choose to do: Sell (sell-to-open) the GPS December 21, 2018 $21 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 $.27 bid/$.33 offer, so we should have no problem getting filled right off the bat. I see fair value near $.30 per contract (at the moment), so try to place your initial offer price at those levels. If the market doesn't bite, you can incrementally lower your offer price. In the end, do not sell for anything less than $.25 per contract. Get those orders in there 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!