New Trade! Hello Smart Option Sellers! Let's end the week with another new trade. You know how I love the lower-end retailers who have been very competitive against the Amazon onslaught. And you also know how I love when good companies have a big one-off drop lower. Well, today's new trade fits the bill. Big Lots (BIG) BIG is part of the lower-end retail group that includes such companies as Five Below (FIVE), Dollar General (DG), and Dollar Tree (DLTR). BIG released earnings this morning before the bell and the market didn't like it. The stock has come off roughly 10% this morning. DLTR had a similar reaction yesterday, and I was thinking of using that stock too, but I like BIG since it's a bit cheaper in price. Here's BIG's current chart. We've played BIG successfully earlier this year and I like having another crack at it. With BIG currently at $43.25 per share, we're going to enter a new put-sell play with another 25% of cushion. Here's what you can choose to do: Sell (sell-to-open) the BIG January 18, 2019 $32.50 put options for a limit sell price of $.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Currently, the $32.50 put option has a market of $.35 bid/$.55 offer, so we'll have no problem getting these done right off the bat at a higher price than $.25 per ($.35 is a better sale than $.25). To potentially get an even better sale price, try offering a sell price somewhere in the middle of the bid/ask spread when you place your order. I know everyone gets to their screens at different times, so the quotes will be different for many of you at time of execution. Bottom-line (once again): DO NOT sell for anything less than $.25 per contract. That's all for now. I'll get the Q&A out a bit later today. Continue to hold all other positions as-is. Contact me here Regards,
Lee Let's Grab That Cash!