AA Update & Trade Results - VZ
Trade Update - Verizon (VZ) Hello Smart Option Sellers! No problem getting filled yesterday on the new VZ put-sell play. In fact, with VZ stock trending lower during the session, mostly in the afternoon, we were able to get decent fills. Trades went across the tape between $.26 to $.31 per contract, with a majority filled near $.28, so that's where we'll take the official mark. Here's what we did: Sold (sold-to-open) the VZ October 18, 2019 $45 put options for an official sale price of $0.28 per contract as an opening transaction (sold-to-open). If you did not place this trade yesterday, you can still do so today at good prices. Great job everyone! Aloca Update (AA) AA has been a thorn in our side. Ever since we got into the trade back in October 2018, it has either meandered nowhere or trended lower. So far in 2019, it has oscillated between $26 to $30 per share. Each time it seems like it will break above $30, it gets knocked back down again. It has been frustrating, to say the least. We have already rolled the trade once, and we can certainly do that again, but it will just prolong the agitation for a few more months. Rolling is mostly necessary if you have confidence in the stock long-term, and you're just waiting for it to get past its current predicament. But I don't feel confidence in AA anymore as having a place in our portfolio. If the stock was going to rally, it would've done it by now. So, I'm making the difficult to decision to jettison this play from our portfolio. This will lock in an overall loss for us, and I believe it will be the first true put-sell position to realize a loss for Smart Option Seller since our inception in January 2017. It is unfortunate, but it's better to get out now than potentially see bigger losses add up if the stock keeps dropping. So, we're going to close it down. Here's what you can choose to do: Note: you will only execute today's 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 AA July 19, 2019 $25 put options for a limit buy price of $1.50 per contract or lower, GTC, as a closing transaction (buy-to-close). Currently, the $25 put option has a market of $1.30 bid/$1.40 offer, so we should be able to buy it for less than $1.50 per contract. Now remember, this buy-back trade is only for those who hold the AA position in your account. If you don't have it, you need to do nothing. For those of you who do have the position, I will go over the final results tomorrow, including the full accounting of both the original January 2019 position and our current July 2019 rolled position. Now, if you feel otherwise and wish to maintain and manage the position on your own, you are more than welcome to do so. Officially, we will be getting out today. As I stated earlier, I have lost confidence in AA as a stock that can perform for us. I think it will continue to meander, but in a downward fashion. I could be wrong, but I'm not willing to wait anymore. If you have the position and will be closing it out today, get those orders in there and let us know how you do. That's all for now. Continue to hold all other open positions as-is. Contact us here with fills, comments, questions or concerns. Regards,
Lee Let's Grab That Cash!