Shares of SUN Setting

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by Steven Sarnoff

The power of our Superleverage method is shining as shares of SUN (Sunoco) are setting back.

On Sunday, August 21, 2016 I recommended that our Options Hotline subscribers buy the Sunoco September $30 put for $50 or less.  That recommendation was triggered at the opening on Monday, August 22, 2016 for $40, with SUN shares trading at  $30.72.

We call this an “el cheapo” option play, because each option gives you the right to control 100 shares of stock for less than $100.  The reasons the option was inexpensive are that, with SUN at $30 or above, the option had no intrinsic (real) value and there wasn’t much time until expiration (the third Friday in September). Continue reading