Friday Update Hello Smart Option Sellers! Happy Friday! Not much new to report since yesterday's alert. Looking forward to Thanksgiving next week, and it'll probably be a bit slower than normal. Fine with me, as I can use a break from this volatility. The markets continue to churn back and forth with a slant to the downside. We're just biding our time with our put-sell positions. All of them expire in December & January (except AMD - February), so the time decay will start to ramp up. This helps the put option prices decline faster as expiration draws near. That's a good thing! Continue to sit tight and hold everything as-is. Q&A Only one question this week. Q: I have been a subscriber on naked put selling with you for many years and very satisfied with the results! I am considering doing short term naked put selling,say 30/45 days.I would appreciate your comments,both negative and positive on this approach. A: I applaud your efforts to further utilize this fantastic strategy. Selling shorter-term options can have both pros and cons. Pros: - options prices decay much faster - can engage multiple times throughout the year - less time for the stock to fall through the strike price Cons: - need to sell higher strike prices to earn a decent premium (closer to the stock price) - less cushion for downside pull-backs - possibility of assignment is higher - higher strike prices lead to larger margin requirements For me, the biggest issue would be having less downside cushion. Just based on the nasty sell-off we've had in October, is enough to make me want to use longer-dated options for that fact alone. More time to expiration = larger downside cushion. Up to you though. Selling put options in a bull market is the best scenario. If we get back into that mode, using shorter expiration dates at that point will be less stressful. Good luck! That's all for today. Have a great weekend! Contact me here with any comments, questions or concerns. Regards,
Lee Let's Grab That Cash!
Current Portfolio Continue to work all other trades as instructed and continue to hold all other open positions as-is. See the Current Portfolio below for current prices & instructions. Note on the Current Portfolio - if you are a new subscriber and don't have a position yet on any of our trades, make sure you enter your order at the original recommended sell prices. Do no enter any order unless the current option price is at, or higher, than the official recommendation. If you are unsure or have any questions, please ask us!