Profit Time! Hello Smart Option Sellers! It's been awhile since we had an opportunity to lock in some gains. But today's your lucky day! Even with the knock-down in the stock market, we still can pull out profits. That's the beauty of time decay when selling options - it helps you gain profitability regardless of which way the stock moves. It's like the invisible hand working in our favor. Although this is longer than we typically like to hold trades, the market still dictates the timeframe. Up-moves are preferable, but as you can see, we can still profit during down-moves. Gap Inc. (GPS) We currently have a put-sell position in GPS that is very near my "80% Rule" threshold. In this situation, we aim to close out the trade when the put option has lost 80% of its value from where we sold it. As of right now, we're near 77% decay - just a tad below my mark. But in light of this fickle market, I'd rather lock in the gains now. If you agree, here's what you can do: Buy back (buy-to-close) all of your GPS December 21, 2018 $21 put options for a limit buy price of $.06 per contract or cheaper, GTC, as a closing transaction (buy-to-close). Currently, this put option has a market of $.05 bid/$.06 offer, so we should have no problem closing it out. Yes, we are only a few weeks away from expiration and most likely this put option will expire with no value. But I've seen stranger things happen, so I'd rather err on the side of caution. If you feel differently and want to stay in the trade, you are more than welcome to do so. If the option expires worthless, you will gain an extra $.06 of profit per contract and save yourself a commission. Officially, we are going to follow our rules and get out of the trade now. If you decide to close it out today, let us know how you do. Continue to hold all other positions as-is. Contact me here with fills, comments, questions or concerns. Regards,
Lee Let's Grab That Cash!