Locking In More Gains!
Locking In More Gains! Hello Smart Option Sellers! The market is rallying strongly this morning, which is a direct result of Trump's 90-day tariff suspension with China. This is a great boost for morale, and confidence that the market can get back to its rising ways. For us as put-sellers, this is exactly what we need. As stocks rise, put option prices go down. That's our recipe for success. Let's close out two more profitable positions today. Emerson Electric (EMR) We currently have a put-sell position in EMR which has reached the "80% Rule" threshold. That's our signal to take profits. I've actually heard from a handful of you over the last few days that you've already been able to close this one out. I'm proud and impressed that some of you are being proactive and making the move to lock in your gains before I officially send the alert. I'm teaching you well! If you haven't already closed it out, here's what you can choose to do: Note: you will only execute this trade if you already hold the put-sell position in your account. If you don't have the position, you can disregard these instructions. Buy back (buy-to-close) all of your EMR December 21, 2018 $50 put options for a limit buy price of $.05 per contract, GTC, as a closing transaction (buy-to-close). Currently, this put option has a market of no bid/$.10 offer, so we'll be putting in a $.05 bid and I'm pretty confident that we'll get filled quickly. And yes, this trade expires in just a few weeks. If you hold onto it, it most likely would expire worthless. By doing nothing today, you could make a few extra dollars in profits and save yourself a commission. But we stick to our plan and follow the rules. Officially, we are closing it out today. You can choose to either close it out as well, or ride it out until expiration and see if it expires worthless. If you hold out and it expires worthless, it will automatically be removed from your account and there would be no action required on your part. It's your call. Shoot me an email whatever you decide to do. I love hearing the results. That's all for now. Continue to hold all other positions as-is. Contact me here with fills, comments, questions or concerns. Regards,
Lee Let's Grab That Cash!