Market Update Hello Smart Option Sellers! I'm not ignoring you! It's just that over the last few weeks, the market has moved straight up without a meaningful pullback. This makes for finding quality, new put-sell trades a tad tougher. I've been wracking my brain looking at chart after chart to find something new for us, but it's just not there. Plus, when the market continually moves up, volatility (VIX) comes down. Since volatility is a component that helps give an option its value, you can understand that lower volatility leads to lower option prices. And when option prices are lower, we get less money in our pockets when we sell them. So you can see the environment right now is not ideal for us to hop into new plays. But it sure helps the positions we already have on. Those are moving right towards the "80% Rule" profit-taking zone. So, sometimes we take the good with the bad. The last thing I want to do is to put us into a sub-optimal trade. That wouldn't be good for anyone. So, we sit and wait it out. Plus, the holidays are upon us and things slow down anyway. Might as well take this inactivity and enjoy having a break from the action. I'll keep looking, but our best case right now would be to have a pull-back. Even a modest 1% move would do the trick. The market seems to be getting toppy, or overbought (in my opinion). Let's see if it can oblige us with a few sellers and maybe we can find one last trade to wind down 2019. If not, we'll look to come roaring out of the gate in 2020. Housekeeping We currently have two open put-sell orders working that were never filled. These have been listed in the Portfolio under "Pending Positions". It's time to jettison those and cancel the orders because they're not going to get done. If you have these working in your brokerage account, follow the instructions below. Here's what to do: Cancel your open sell orders on HACK December 20, 2019 $29 put options and CSCO January 17, 2020 $30 put options. That's all for now. If anything comes across my screens, I'll send another alert tomorrow. 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!