Friday Q&A

Friday Q&A Hello Smart Option Sellers! Not many questions this week, so we'll keep it short. Q: Lee- How many contracts do people typically write on these deals???? With 10 contracts the profit only looks to be $250...... A: Our sweet spot when selling out-of-the-money (OTM) put options is typically $.25 to $.30 per contract. So yes, that equates to $250 if selling 10 contracts. We have members who only trade one contract and some who trade 100 contracts. Our goal is to get paid upfront cash in exchange for the opportunity to buy stocks for a really cheap price. Since Smart Option Seller's inception, we have structured the service to keep the actual buying of shares (assigned) to a minimum. This is how most of the members want it. In order to do that, we must choose strike prices that are very far OTM. Choosing those kind of strike prices also helps during extreme sell-offs like we've recently witnessed. Had I chosen strike prices that were closer to the stock's price, we'd most likely be shareholders by now, and probably underwater, too. There's nothing wrong with collecting $.25 to $.30 per contract. That formula has worked great for us since inception. You are more than welcome to choose any strike you'd like. Use the stock I pick and then formulate your own strategy. Many of our members write to me all the time about doing just that. The higher the strike price, the more money you'll get. The only caveat is that you're more at risk to assignment. Plus, I will only follow and give guidance on official trades, not ones that you choose for yourself. Q: Re: HACK,