Market Update

Market Update Hello Smart Option Sellers! Not much going on this week as far as new trades go for us. The markets have been quietly tagging all-time new highs of late, with the last one happening on Tuesday. We have since backed off a touch. Earnings season is winding down, so I don't expect many more fireworks or lots of new opportunities to jump into new plays. But I'm always here watching... Unofficial Trades Although I don't have anything new for us, I can offer two unofficial trades for those that might like to take a look. Walmart (WMT) Yes, WMT is one of my favorite stocks, and based on its chart activity, and the fact that Target (TGT) just crushed earnings the other day, I have to believe WMT is destined to shoot higher for the foreseeable future. WMT released earnings as well last week and shot up $5 per share. It has since given back those gains (I don't know why), but I believe it's a gift for anyone willing to get long on the stock. Here's the current chart. With the stock near $119.25 at the moment, I believe shooting north of $125 within the next few weeks is in the cards. But, knowing that anything can happen, and timing could be off, selling out-of-the-money (OTM) put options can help with downside cushion and directional error. Since WMT's price tag is outside of our official comfort level, I can offer up an unofficial trade for those who want in. Here's what you can choose to do: Sell (sell-to-open) the WMT March 20, 2020 $90 strike put option contract 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 $.26 bid/$.32 offer, so it can definitely be sold for better than $.25 per contract. Remember, this is an unofficial trade so I won't be following it. If you get involved, use the "80% Rule" to guide your profit-taking goals, and also use whatever stop-loss methods are in your toolbox in case the stock falls. Gap Inc. (GPS) I mentioned the other day that GPS is reporting earnings after the bell today. We recently closed out a trade on GPS for a small loss that still irks me. Regardless,