New Trade! Hello Smart Option Sellers! Once again, as mentioned in a recent alert, August is turning out to be a very volatile month. The up and down moves are not only big, but they are happening almost daily, with a bearish slant having the upper hand. This has been the pattern for at least the last five to six years, as far as I can remember. Between the latest round of U.S.-China tariff issues still in the air (albeit delayed until December now), unrest in Hong Kong, economic slowdown around the globe, and treasury yield inversions, we can see how the market is feeling unsettled and worrisome. Stocks have rallied a long way, and now some of that air is deflating. Were stocks fairly priced up at the recent top? Well, it's not always easy to tell. A stock is worth whatever someone is willing to pay for it. And if there's no one coming in behind to buy it after you have, then maybe it was too expensive. American companies are still profitable, but those profits may slow down now due to all the issues mentioned above. Sure stocks can go down, but as long as we stick to quality, the rebound will reward us even quicker. Let's jump into a new put-sell trade today, one in which is purely based on the technical picture on the charts. Pfizer, Inc (PFE) One of the biggest pharmaceutical companies in the world, PFE has taken quite a beating over the last few weeks, giving up roughly 20% in price from $43 to $35. Here's the current chart. It is clearly extremely oversold, and moves like that can't go on for much longer. It will snap-back quite soon, I'm convinced. And if it's not a snap-back, at least the selling will be stemmed. I've seen that pattern too many times to not know what the outcome will be. We are going to take a new trade in PFE that will give another 20% of downside cushion on top of what it's already lost. It is almost inconceivable that a stock like PFE can drop 40% in the short time frame that we will be involved. Even if it does drop more, the strike price we'll choose will be an extremely attractive price point if we decide to take possession of the stock. Here's what you can choose to do: Sell (sell-to-open) the PFE December 20, 2019 $27 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 bid/ask market of $.25 bid/$.28 offer, so let's see if we can sell a bunch today. If you don't get filled today, just keep your order working "GTC". Do not sell for anything less than $.25 per contract. Ok, that's all for now. Get those orders in there and let us know how you do 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!