Alcoa Trade Results
Trade Update - Alcoa (AA) Hello Smart Option Sellers! Yesterday we completed our long-running position on Alcoa. Much to our dismay, it became our first official losing put-sell trade since Smart Option Seller's inception in January 2017. Almost two and a half years without a loss. Not bad. In the end, the loss wasn't too big, and I'm glad to move on from it. If you were involved in the trade and opted to get out yesterday, the final results are below. Here's what we did: Bought back (bought-to-close) all of the AA July 19, 2019 $25 put options for an official buy price of $1.35 per contract as a closing transaction (bought-to-close). Fill prices spanned a decent range, from $1.26 to $1.42 per contract, with the majority at $1.35 per. Here are the final numbers: We originally established (sold-to-open) the January 2019 $28 puts on October 19, 2018 for a sale price of $.28 per contract. On December 26, 2018, we closed (bought-to-close) this position for $2.40 per contract, which locked in a loss of $2.12 per contract ($2.40 - $.28). Also on December 26, 2018, we rolled that position by establishing (sold-to-open) the July 2019 $25 puts for a sale price of $2.90 per contract. On May 2, 2019 we closed (bought-to-close) this position for $1.35 per contract, which locked in a gain of $1.55 per contract ($2.90 - $1.35). Between all the trades, we netted a loss of $.57 per contract ($2.12 - $1.55). If these were the only trades you took, then your loss was $.57 per contract. If you were involved in the hedge trade from last month, we took another $.15 per contract loss on that position too, for an overall loss of $.72 per contract. That's it. In the whole scheme of things, it's unfortunate to lock in this loss, but I'm just not feeling the love anymore from Alcoa. Let's move on and continue to find other quality trades. 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!