Trade Update

Trade Update Hello Smart Option Sellers! Happy Friday! Let's go over the results of yesterday's new trades. Sysco (SYY) Unfortunately we could not get filled on the SYY put-sell. Currently, the market on the put option has moved down to $.15 bid/$.20 offer. I hope none of my Smart Option Sellers sold at $.20 per contract yesterday, nor is your offer price currently working at $.20 per contract. That's a no-no. We are trying to sell it at $.25 per contract, so obviously we need the stock to drop a bit before we may see fills. When stocks drop, put option prices rise. While I'm never the one to root for a stock drop, in this case, that's what needs to happen. I am not interested in moving us up to the $60 strike price. So for now, continue to work your sell order at $.25 per contract "GTC". Here's the order again: Sell (sell-to-open) the SYY November 15, 2019 $55 put options for a limit sell price of $0.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Since the expiration date is four months away, a small move in the stock price could help. Also, SYY releases earnings on August 12, so maybe we'll get a shot at being filled at that time if it doesn't happen before then. CSX Corp (CSX) We had better luck on this trade as the put option prices stayed elevated part of the day after the alert was sent out. Fills went across the tape between $.25 to $.28 per contract, with a majority at $.26 per, so that'll be our official mark. Here's what we did: Sold (sold-to-open) the CSX November 15, 2019 $50 put options for an official sale price of $0.26 per contract as an opening transaction (sold-to-open). I would've liked to have gotten higher than $.26, but the stock did move higher throughout the day, which put downward pressure on the option prices. After the alert came out, the stock price rallied roughly $2 per share. For those that didn't get filled, or didn't place your order yet, continue to work it GTC at $.25 per contract or higher. Vanguard Dividend Appreciation Fund (VIG) Although this was an unofficial trade, we did see fills go across the tape between $.25 to $.29 per contract. Congrats to those that took this trade. I really like it. I will not be following it officially, so use the "80% Rule" threshold to gauge your future action on it. That's all for now. Look for a small Q&A alert later this afternoon. 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!

Recent Posts
Archive

THE SMART OPTION SELLER

©2016-2020 Smart Option Seller                Lee Lowell