I'm Back...New Trades!

New Trades! Hello Smart Option Sellers! I'm back from my few days away. As nice as it is to take a break every now and then, it always seems to be at a time when the markets go haywire. Also, historically, August is a very skittish month. When I left last week, the markets were still trading at near all-time highs, and then the Fed and Trump dropped some comments to cause panic. There's no doubt the on-going trade & tariff war is most pressing on people's minds. U.S. businesses are the ones to pony up the tariffs when they import items from China. Those tariffs make their products more expensive. They can then either pass that higher cost onto the consumer or eat it themselves (to a point). If they eat it, they may compensate by laying off workers. which in turn causes less money for consumers to buy stuff. With two thirds of the U.S. economy relying on the public to spend money, the tariffs could thwart that spending and send us into a recession. That's the short and simple version of it. I'm still not sure if President Trump really understands how that whole process works. I think he's more enamored with himself and thinks his real estate negotiating skills (or lack of) will translate to the rest of how the global economy works. Regardless of all that, he still looks to the stock market to grade his performance. And if the stock market falls, he'll first blame someone (or something) else, and then take to Twitter to calm everyone down and talk the markets back up. I'm sure of this. I'm here to help calm everyone down, and offer guidance to view the current move as great opportunities for us. I'm sure many of us are still kicking ourselves for not buying stocks in 2008-2009 when they were at bargain basement prices. Of course I don't have a crystal ball and I don't know when Trump will tweet or when the selling will end, but I do know the best way to build a long-term positive portfolio is to buy stocks along the way (on the highs and lows). Let's use this current environment to hop into new trades. I have four new opportunities for us today. Emerson Electric Co. (EMR) I love this dividend aristocrat, and it's one we've played successfully before. Here's the current chart. With it currently trading near $59.50, we're giving ourselves over $19 of cushion on top of the drop it's already undergone. That's a solid 32% buffer. Here's what you can choose to do: Sell (sell-to-open) the EMR December 20, 2019 $40 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 $.25 bid/$.40 offer, so let's see if we can get it done at better than $.25 per. Since the bid/ask is somewhat wide, you should place your sell order at $.35 or $.30 to start. Do not jam the bid right away. The market is scared, so let them come to you. Whatever happens though, do not sell for anything less than $.25 per contract. Prime Cyber Security ETF (HACK) We just closed out a profitable play on HACK, and we're going back for more. Here's the current chart. With it currently trading near $37.50, we're giving ourselves over $8.50 of cushion on top of the drop it's already undergone. That's a solid 22.7.% buffer. Here's what you can choose to do: Sell (sell-to-open) the HACK December 20, 2019 $29 put options for a limit sell price of $.25 per contract or higher, GTC, as an opening transaction (sell-to-open). As we know, HACK has very wide bid/ask markets, but that's not going to stop us. This is a great ETF to cover the bases as far as cyber security is concerned. This could be a great long-term hold if we are assigned the shares. Currently, this put option has a market of $.15 bid/$.65 offer, but don't let that scare you. Since the bid/ask is wide, you should place your sell order at $.35 or $.30 to start. Let's see if we can sell for better than $.25 if possible. Do not sell for anything less than $.25 per contract. Intel Corp (INTC) Another one of our recent profitable trades that we closed out last week (I will go over the results later today). With its current stock price drop, we're going back for more. Here's the current chart. With it currently trading near $46.25, we're giving ourselves $9.25 of cushion on top of the drop it's already undergone. That's a solid 20% buffer. Here's what you can choose to do: Sell (sell-to-open) the INTC October 18, 2019 $37 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 $.27 bid/$.31 offer, so we should have no problem with this one. Do not sell for anything less than $.25 per contract. Advanced Micro Devices (AMD) See a pattern here? We also closed out a profitable put-sell play on AMD just two weeks ago. Let's use the down-move to get right back in. Here's the current chart. With it currently trading near $28.65, we're giving ourselves $9.65 of cushion on top of the drop it's already undergone. That's a solid 33.6% buffer. Here's what you can choose to do: Sell (sell-to-open) the AMD November 15, 2019 $19 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 $.29 bid/$.35 offer, so we'll be able to do much better than $.25 per contract. Try to sell between the bid/ask market when you get to your trading screen. Do not sell for anything less than $.25 per contract. Ok, that's all for now. Get those orders in there pronto and let us know how you do. I will send another alert later with the results from last week's SYY and INTC results. 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!

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