Most Main Street beats Wall Street readers know that I own 2000 Shares of Advanced Micro Devices (AMD). You might also know that I sold 20 contracts of the $15 Calls expiring 1/19/18. Today, after the close a report came out that Tesla entered a deal with AMD to develop chips to be installed in their self drive cars. As I write AMD is up $1.50 and it’s at $14.65. I’ll make money with my 2000 Shares up until it hits $15 because I sold the Call. At the opening in the morning my account will jump up because of the after hours stock increase but I’m concerned it will go above the $15 Strike Price. That’s not a problem but I’ll be holding the position until January without making more money if it stays above $15. So after hours I bought another 500 shares of the stock at $14.30 to enjoy more upside if the stock continues going up. I think the stock will be up a little more tomorrow but I don’t think it will keep going up because of this deal. I don’t even think the stock will stay above $15 until January 19th. I’ll watch to see how the stock does and make a decision if I’ll be making more moves. At the moment I own 2500 Shares and 2000 are involved in an option with a Strike Price of $15.
Buy 500 Shares AMD @ $14.30
Steve
The Options Coach