Friday Update Hello Smart Option Sellers! Happy Friday! Walmart (WMT) For those of you who placed the unofficial trade on WMT yesterday - congrats! Most of the put-sells centered around the $.26 or $.27 sale mark. It's got a nice cushion of almost $30 below its current stock price of $119.40, and based on the calculator below, the chance of WMT falling to $90 by March 2020 expiration is a scant .66%. Put another way, there's a 99.6% chance it will stay above $90. Those are some good odds!
Remember, this is an unofficial trade so I won't be following it. If you got 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) Well, GPS released earnings after the bell yesterday and the results were mostly inline with the lowered expectations that they pre-announced a few weeks ago. Not much fireworks in the stock price as it's currently lingering near $16.50 per share - very close to yesterday's range. If you happened to have purchased the unofficial strangle yesterday, it most likely has given up a decent chunk of its value right now. You can opt to hold until next Friday to see if there's any movement that might help recapture more of the purchase price. Or, you can sell now and recoup some premium. Up to you. As I say, earnings are a crapshoot, and it's a hard gig trying to make money on guessing what will happen. We'll take these trades from time to time, but only with "fun" money that we can afford to play with. No betting the house! This will be the last I mention GPS for awhile. Lol. That's all for today. No Q&A as I haven't received any questions of late. I'll check back in next week. Continue to hold all other open positions as-is. Contact us here with fills, comments, questions or concerns. Have a great weekend! Regards,
Lee Let's Grab That Cash!