New Trade! Hello Smart Option Sellers! While we get squared away with the BIG trade adjustment from our earlier alert (if you needed to), I wanted to send out a brand new trade. This company needs no introduction at Smart Option Seller, as we've played this trade successfully six times since our inception in January 2017. And we're going back for a seventh. Gap, Inc. (GPS) GPS released great earnings last week and the stock powered higher $6 per share. But since then, the stock has relinquished about $5 of those gains. The reason being? Most think it's because management has decided to spin off the Old Navy brand completely from the Gap umbrella and have it form its own company and trade under its own name. Old Navy has been a very successful part of the Gap family, so does that make Gap a loser here going forward? Definitely not. But it may undergo some changes in the coming future. Since the spin-off won't happen completely until 2020, I'm very content with a short-term trade for us. Here's the current chart. With the stock near $26.50 at the moment, we're going to hop into a new put-sell that has roughly $6.50 of downside cushion, which equates to a nice 24.5% buffer. Here's what you can choose to do: Sell (sell-to-open) the GPS June 21, 2019 $20 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 $.25 bid/$.30 offer, so we should be able to sell these for at least $.25 each (or higher). Tried to get filled somewhere between the bid & ask market. You do not need to sell right at the prevailing bid price. Haggle a bit! Do not sell for anything less than $.25 per contract. Get those orders in there and let us know how you do. BIG Update A few questions have come in so far about the BIG trade. Let me address. 1. Yes, we're using the March 15, 2019 expiration for this trade as it offers the cheapest priced options for us to buy. 2. If your broker isn't allowing you to buy these for some reason, there must be an explanation why. There shouldn't be a problem though. Ask them. 3. We are holding the prior roll trade as-is, and I will give profit/loss scenarios tomorrow after the earnings results are announced. 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!