New Trade! Hello Smart Option Sellers! We're in full earnings season mode and stocks are jumping and dropping. For us, we like to concentrate on the stocks that drop, as it can offer us a great opportunity to jump into a new trade. And that's what we're doing today. CSX Corp (CSX) Yep, we just closed out a profitable trade on CSX a couple weeks ago, and it's ripe for another. Earnings on CSX has passed us by so we won't be at risk for any unexpected adverse moves. The stock is undergoing a slight pull-back from its highs of last week, so it's a good time to step in. Here's the current chart. Here's what you can choose to do: Sell (sell-to-open) the CSX February 21, 2020 $50 put options for a limit sell price of $0.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Currently, this put option has a bid/ask market of $.27 bid/$.33 offer, so we should have no problem selling for at least $.25 per. Remember, try to start your offer price somewhere between the bid/ask market when you get to your trading platform. Selling at $.27 is better than selling at $.25! With CSX stock currently near $70, it gives us a good $20 cushion above the strike price, which equates to a healthy 28.5% buffer. Solid! On a side note: The Federal Reserve will be putting out their interest rate decision at 2pm EST today, and it's very high odds that a rate cut is coming. Not a big surprise. I don't think the decision will adversely affect the market. We'll see... 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!