A Trio Of New Trades!
A Trio Of New Trades! Hello Smart Option Sellers! Ok, time to get busy! As mentioned in last week's alert - although I'm impressed with the rally we've seen since December 26, 2018, I'm still wary of the bears not giving up so easily. I want us to get a foot in the door and hop into some new trades to at least have some kind of exposure, but with using half positions only. We recently placed a put-sell order on the HACK June 21, 2019 $26 put options which has not been filled yet (except for a lone 10-lot by one of our members). We'll continue to work that one for the time being. But... I've found three new trades for us today. So let's get right to it. Kellogg (K) Yes, we just closed out a successful trade on K two days ago, but with the amount that this quality stock has fallen, it makes sense to give it another go. We will be able to use a strike price with lots of downside cushion. Here's what you can choose to do: Sell (sell-to-open) the K June 21, 2019 $42.50 put options for a limit sell price of $.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Currently, this put option has a market of $.15 bid/$.40 offer - a little wide for my liking, but we'll be putting in a $.25 offer, so let's see if someone bites. There's no guarantee that we'll get filled, but if we have another down-move in the near future, it should work in our favor. With K stock near $58.75 at the moment, we're getting a solid $16 cushion above the strike price which equates to a 27% buffer. Here's the current chart. We're coming up on earnings season for all our trades today, with K releasing on February 7. Remember half-size positions only! Nike (NKE) Another stock that we also recently closed out for a profit. I have no qualms about recycling trades over and over. If it works, then we'll keep exploiting it. Here's what you can choose to do: Sell (sell-to-open) the NKE April 18, 2019 $60 put options for a limit sell price of $.25 per contract or higher, GTC, as an ope