Trade Results - CVS & EMR
Trade Results Hello Smart Option Sellers! Welcome back. Let's go over the trade results from Friday's new put-sell orders. CVS Health (CVS) Fills went across the tape between $.25 to $.31 per contract, with a majority near the $.28 per contract mark, so that's where we'll take the official price. Here's what we did: Sold (sold-to-open) the CVS May 17, 2019 $47.50 put options for an official sale price of $.28 per contract as an opening transaction (sold-to-open). If you did not get filled, just keep your sell order working "GTC" for at least $.25 per contract or higher. Emerson Electric (EMR) Fills went across the tape between $.25 to $.29 per contract, with the average near $.27 per, so that's where we'll take the official mark. Once again, if you did not get filled, just keep your sell order working "GTC" for at least $.25 per contract or higher. Here's what we did: Sold (sold-to-open) the EMR June 21, 2019 $45 put options for an official sale price of $.27 per contract as an opening transaction (sold-to-open). Both orders from Friday were certainly the case of - the early bird gets the worm. Some trades just work out that way. I advise everyone to sign up for our phone text alerts (if you haven't already), so you can jump on these trades right away. But, knowing how all put options exploded in price during the December swoon, sometimes getting in late offered even better results. If we have another sell-off, good fills will be attainable. In the end, if you have not been filled, the best course of action is to keep your sell order working "GTC". Vertical Spread Trader Update VST went live late on Friday. We had some questions that came in about the new service, some of which I'll post below. But first, let me make a few comments: The launch of this new service came about due to an overwhelming desire from many of you, some of whom emailed me multiple times about starting it. For those of you are newer to Smart Option Seller, you may have no idea what we're talking about. That's ok. VST is an option spread service, concentrating on selling put-option credit spreads, specifically. It is very similar to put-selling in that it has high rates of profitability, takes advantage of a neutral-to-bullish bias, and collects upfront income. But it differs in one big way - it involves two trades in one (forming "the spread") while maintaining a very strict and defined limited-loss feature. The limited-loss feature is one that can help sleep better at night, especially if we encounter swift and volatile down-moves. Plus, it can help alleviate the margin requirement issue some of you may encounter when we have lots of trades open at the same time. I would recommend all of you re-read the alerts from 8/17/2018, 9/21/18 & 9/25/18 to get a feel for what VST is all about and what it can accomplish. Now, with that said, I hope those of you who lobbied me for this new service, and overwhelmingly voted "very interested" in our poll, are still going to join us. I see great things ahead for VST, and I expect us to have multiple trades starting this week. Remember, VST is not open to the public yet, but once it is, I foresee a higher fee to join. Click here to visit the sign-up page. Let's go over a couple questions: Q: Lee I just signed up for your new service “VST” and the way I see it I only paid $458. Back in Sept you used NFLX Jan 19 as an example of a vertical put spread, I entered a trade at $250/$245 and when NFLX dropped a short time later I entered another trade at $ 235/$230, last Friday the trades both expired giving me a total profit of $537 so your new service only cost me $458. If the first trade with VST has the same success I will have more than paid for the new service on my first trade, this I call a great ROI. A: Thank you. The Netflix (NFLX) trade in question is one example that you can read about in the previous alert dates that I mentioned above. Have a read to see what the trade entailed. Congrats! Q: Hey Lee, About VST, can gains be locked in faster than Smart Option Seller? Or is the time-till-expiry relatively the same? A: It depends on the expiration month we use and how fast the stock moves upwards. In general though, it takes spreads a little longer to reach profitability than outright single option trades. This is because both "legs" of the spread move in tandem to a degree, so it takes a bit more time for the spread to either widen or contract (we want it to contract). I foresee most of our trades being a few months in duration. Ok, that's all for now. Continue to hold all other open positions as-is. Contact me here with fills, comments, questions or concerns. Regards,
Lee Let's Grab That Cash!