Sell Snap Puts for 66% Two-week Gain

By Linda McDonough • April 3, 2018

Sell to close the June 15, 2018 put on Snap (NSDQ:SNAP) with a strike price of $16 at $2.90 or higher. Symbol (SNAP180615P16)

Book the 66% gain in this bearish position. I don’t expect a long-term upward move in the stock but the market is thrashing around so much we might as well book this one and look for new entry points.

As always, let me know how you did on this trade by taking this brief survey.

Stock Talk

Comments Oldest First

Comments Guidelines

Jeffrey Shultz

04/03/18 ‐ 11:49am ET April 3, 2018 at 11:49am ET

Thanks for yet another winner, Linda.

Michael D

04/03/18 ‐ 12:14pm ET April 3, 2018 at 12:14pm ET

thanks Linda, filled @ $2.91 . Schwab.
appreciate it….
may we have another plea$e?

Phil Ash

04/03/18 ‐ 12:16pm ET April 3, 2018 at 12:16pm ET

Thanks for making it look easy. Another week, another 65%.

Curtis

04/03/18 ‐ 12:30pm ET April 3, 2018 at 12:30pm ET

Wow. Feel lucky as I am still on vacation but the alert came through and I was able to get fill at $2.92. Thanks, Curt

JL

04/03/18 ‐ 12:38pm ET April 3, 2018 at 12:38pm ET

sold at @$2.92, Etrade. Thank you, Linda.

Mark F

04/03/18 ‐ 12:39pm ET April 3, 2018 at 12:39pm ET

Sold @ $2.91. Good job.

Asjad Shamim

04/03/18 ‐ 4:10pm ET April 3, 2018 at 4:10pm ET

Hi Linda,
Attempting to put questions in the latest Stock Talk for the feedback…. Please disregard same question in older alerts.

Rookie Questions:

1) The price after strike price you mention in your alerts, are those limit price?

2) What happen if the limit price goes down from what you suggested, do we roll options or wait to bounce back?

3) When do you typically issue new alert? Every week or every other week? Any specific day or whenever you see potential in some stocks?

Thanks.

Asjad Shamim

Linda McDonough

04/03/18 ‐ 5:23pm ET April 3, 2018 at 5:23pm ET

Asjad,
Yes, the price where I recommend selling at $X or higher is a limit price (the inverse, of course, would be to buy an option at $x or lower).
I usually do not recommend chasing a price. If the price gets above my buying limit, I would wait. Often the price will come back down (or move back up) to my limit. If I think an option needs to be sold before a certain date, and especially if it is expiring soon, I will alert subscribers to the timeliness of the trade.
Unfortunately, there is not a set schedule for the entry or exit of these trades. I am always working on several ideas and often am waiting for the stocks to reach a certain level or waiting for a company or industry event, to issue the alert. I wish I had a more scientific process but I don’t.
The pattern has been that I have usually issued a trade idea every other week but again, that can change based on news events and market volatility (of which there is plenty of both these days!).
Best,
Linda

Daniel Long

04/04/18 ‐ 9:44am ET April 4, 2018 at 9:44am ET

Got the sell notice after hours yesterday and entered the trade at 2.90 for opening bell.
Trade filled at 3.06 on opening.
Thanks.
DL

Robert Bruno

04/10/18 ‐ 2:13pm ET April 10, 2018 at 2:13pm ET

At what percentage down is it advisable to sell a losing option.

Linda McDonough

04/11/18 ‐ 10:49am ET April 11, 2018 at 10:49am ET

Robert,
I don’t have a fixed answer for you. Each subscriber trades options a bit differently depending on his or her risk profile. I typically like to hold an option until the event that I have targeted. If the news does not work out as I had planned, I will usually just sell the option regardless of its price.
Best,
Linda

George McMillion

04/12/18 ‐ 9:39am ET April 12, 2018 at 9:39am ET

Was out of Country, no secure Internet so had to sell SNAP this morning. Missed the 66% gain
but did get 11%. Thanks Linda.

Add New Comments

You must be logged in to post to Stock Talk