WMT new trade, and more
Yesterday we sold some Walmart puts at 45 cents.
Today, WMT is up $1.50 and we have a profit of about 30 cents per contract. This should be closed for a quick overnight profit. Today, we did place orders to buy them all back at 5 cents each. ThinkOrSwim allows us to close a short option position priced at 5 cents or less without commission – that’s free! It is always prudent to close a position once most of the time value has evaporated. When you can only make another 5 cents (reward) but you can lose a large amount (risk) on a big stock move, it has to be closed. Be smart and not greedy. Never try to make that last nickel.
If you were a DPO subscriber at $20/month – this small 3 contract trade would have paid for your subscription for the next 5 months – overnight. Trade with us so you can learn how to generate cash flow just like any other business. You must trade options like a business and learn to make every position “cash flow”.
At DPO, we teach you how to manage your account as a portfolio, not as one random trade after another. To succeed in this business, you have to follow a plan. For $20 a month we provide you with examples from our portfolio so you can develop your own plan without starting from scratch.
Right now, we are watching Disney. We do not recommend increasing your DIS position or starting a new position. This can go quite a bit lower. To protect our position, we have started selling ITM calls against our stock. More on this tomorrow………
Stay optioned, my friend!