Trade Alert: Keep the Money! (WU)

By Jim Pearce • November 9, 2018

I am closing out our short put position in The Western Union Company (NYSE: WU) before it expires at the end of next week. We’ve had a nice rebound over the past two weeks, but as of yesterday’s close this option was still slightly in-the-money (meaning it is currently trading below our strike price).

My concern is that at some point it may pull back a bit, and I don’t want that to happen next week just before our option expires. If WU closes below $19 next Friday then this option will be exercised against us.

We will still make money on this trade since we sold this option ten weeks ago at a limit price of $0.80 and at yesterday’s close was showing a bid/ask of $0.20 – 0.35 making our return on invested capital more than 100% if that spread holds up into today.

NOTE: This alert is only to close out an existing position. If you did not sell a short put on WU to begin with then please ignore this trade alert!

How to Make the Trade:

Trade: Buy to close the November 16, 2018, $19 put option on The Western Union Company (NYSE: WU)
Symbol: WU181116P00019000
Limit Order Price: a debit of $0.40 or less (change to market order if not filled by 3 p.m.)
Amount: equal to the number of short put contracts initially sold

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Stanley

11/09/18 ‐ 9:36am ET November 9, 2018 at 9:36am ET

WU closed for .30 @ Fidelity

Daniel Long

11/09/18 ‐ 9:51am ET November 9, 2018 at 9:51am ET

WU BTC @.30 at Fidelity.
Thanks for vigilance, Jim.
DL

George McMillion

11/09/18 ‐ 10:05am ET November 9, 2018 at 10:05am ET

Closed WU for $.33 Debit on TOS

Ian

11/09/18 ‐ 10:37am ET November 9, 2018 at 10:37am ET

Good morning Jim,

WU closed at @ $0.35 debit, thank you for early closing, I prefer this than to hold the stock.

When I was purchasing this service, one of the selling points was: if position would be “put to me” is that it is a strong/good company and stock will go back up and meanwhile we would sell covered calls. I agreed with that premise.. Now that I am actively participating, I see that good companies do loose their value and it does not look so good any more, GE, BBBY, GPS, BPL, etc…, nor, we sell the covered calls for most of them because price is too low
So, I think I do prefer closing early (even at reduced profit) and reuse the money for other opportunities than having it “put to me” and not being able to use the capital.

Thank you for watching out for us, I appreciate that.

11/09/18 ‐ 10:40am ET November 9, 2018 at 10:40am ET

correction, WU closed @ $0.31 debit

Maria R

11/09/18 ‐ 10:56am ET November 9, 2018 at 10:56am ET

WU short put closed @ .30 db @ schwab. thanks

Chuan

11/11/18 ‐ 10:30am ET November 11, 2018 at 10:30am ET

WU closed @.27 @ Schwab, thanks Jim

Greatcarp

11/11/18 ‐ 12:23pm ET November 11, 2018 at 12:23pm ET

WU closed @ .25 @ Schwab Ditto Ian

Pilar Salas

01/21/19 ‐ 11:33pm ET January 21, 2019 at 11:33pm ET

I nee to know your phone number and your email address, I’m subscribed to the Income Millionaire and I got sick and I want to get back on my study to pass the option trading. My name is Pilar Salas, salasp002@hawaii.rr.com, and my phone number is 808-206-4633. Please send me an email on how to catch up. Thank You, Pilar Salas.

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