Tuesday Update Hello Smart Option Sellers! Hope everyone had a great & relaxing long holiday weekend. We're back at it here at the controls and Fall is right around the corner (unfortunately). With the kids back in school and summer vacations over, we can expect the markets to kick into high gear. We're starting this new week on the defensive again as the markets are already selling off. The volatility will remain for the near-term, I believe. The White House can certainly put out press releases (Trump's tweets) about progress with the China trade stand-off, but I think that's just our president talking up the markets. He knows he has the power to temporarily do that. It might pop the markets at that moment in time, but I think the players are getting tired of that. Until some real concrete news can be heard from both sides, we're going to have more of the same whipsaws. Gap, Inc (GPS) GPS stock is falling again this morning, hovering near $15.40 per share. If you had purchased the hedge trade of the August 30, 2019 $15 put option two weeks ago, you will find that it expired worthless on Friday and has now been removed from your account. We will book the loss on it. We still hold the September 20, 2019 $18 put-sell in our account and it is looking stronger every day now that we should expect to be assigned on it by expiration. Please re-read the last few alerts if you hold this position as I don't want any surprises for anyone. If you plan to take the assignment, you will need to have the full funds in your brokerage account to pay for the shares. Once that occurs, we will begin to sell covered call options against the position. This will allow us to bring in more upfront cash to help offset the current paper loss on the position. If you do not want to take assignment, it is up to you to decide if you should roll the trade or get out completely. We are officially holding for now. The best case scenario would be for GPS stock to rally above $18 by September 20th, but I don't see that happening. My patience is getting thin with this position, but it is moving with the overall market, so it may be premature to get out now, especially if we have a sustained rally in the near future. Not much else today. We will continue to hold our other trades as-is and if there is anything really juicy to jump on, I will send an alert ASAP. 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!