We have decided to add an October put option trade to our next batch as we look to open new positions into September and October. These options are a cheap way to play a stock that could tumble as much as 20% when they announce earnings near month-end.
The current ask is 40 cents and 30 contracts would cost you $1,200. A 10-contract trade would cost you $400. A 5-contract trade will cost you $200. These options have the potential to double or even triple if shares fall into the $30’s like we believe they will. They are currently north of $44.
Subscribers, check the Members Area for the update and we will be back in the morning with a full report.