Friday Update...And An Unofficial Trade
Friday Update Hello Smart Option Sellers! With the G-20 summit happening this weekend, and President Trump meeting with China's leader Jinping, it makes sense to sit on the sidelines in case any fireworks erupt. If talks break down, we could see a knee-jerk reaction to the downside on Monday, which could open up a few days of selling. That could offer us a good opportunity to sell some juicy put-sells. On the other hand, if talks go well, we could see renewed bullish activity that will most likely take all markets to new all-time highs. That would bode extremely well for our current positions. The way I see it, we'll do well in either scenario. Might as well have a relaxing weekend and not engage new positions today that could go either way on Monday morning. But for those of you who might want some action, here's an unofficial trade. Unofficial Trade - Paypal (PYPL) I love Paypal. It's one of the original online payment processors who's at the forefront of this sector. Both PYPL and Square, Inc (SQ) are dominating the market for small businesses and entrepreneurs as a form of online payment systems. I like PYPL a bit more only because it's been in existence longer, although both IPO'd around the same time. Here's the current chart of PYPL. At Smart Option Seller, we concentrate on stocks $50 and under, which sometimes leaves us out of great plays. So from time to time, I like to offer up unofficial plays to those of you who might like to take a stab at an otherwise great stock. And yes, we have taken official plays on more expensive stocks, but that is very rare. So, if you'd like to take a shot, here's what you can choose to do: Sell (sell-to-open) the PYPL October 18, 2019 $75 put options for a limit sell price of $.25 per contract or higher, as an opening transaction (sell-to-open). Currently, this put option has a market of $.25 bid/$.29 offer, so the trade is obtainable. Remember, try to work your order between the bid & ask price when you get to your trading platform. With PYPL stock near $114 per share, this trade will have $39 of downside cushion, which equates to a fat 34% buffer. Solid! And lastly, this is an unofficial trade, so we won't be tracking it in the portfolio. If you get involved, stay within your comfort zone and use my "80% Rule" guide for profit-taking. Ok, that's all for now. Continue to hold all other open positions as-is. There will be no Q&A today. Contact us here with fills, comments, questions or concerns. Have a great weekend! Regards,
Lee Let's Grab That Cash!