I’ve been in and out of Advanced Micro Devices (AMD) Calls many times. And I just jumped out again with a nice profit.
When it comes to AMD I feel like I’m in a grove, I’m playing this stock like a piano and the music is filling my mattress.
If you take a look at my “Trade History 2019” you will see 10 or 12 trades with AMD in the last 6 months. Every one was a winning trade. You can add this trade I just made to the list.
Last week, on 8/30 I sold a Call on AMD. It was a 10 contract 1/17/20 $35 Call. I received a premium of $2.70 for $2700. Today with the stock down the premium was down to $2.15. AMD is trading in a range so I watch for where I think it will hit support and resistance. Along with support and resistance I look at the premium. If I think it’s time for a reversal and I can get out with a nice profit, I do! A little while ago I noticed AMD was down to where it was hitting support, and the premium was at the point where I could grab $550. With the premium at $2.15 I did a “Buy to Close.” I spent $2150 of the $2700 I brought in on the selling of the Call, to close the position. This gave me a $550 profit in one week and this deal is over!
8/30/19 – Sell to Open 10 AMD 1/17/20 $35.00 C @ $2.70 (+$2700)
9/6/19 – Buy to Close 10 AMD 1/17/20 $35.00 C @ $2.15 (-$2150)
Profit +$550
If you look at my “Active Trades/Current Positions” and scroll down to “Still Active” you will see I have a lot going on. Sometimes it’s very hard to follow, and stay on top of everything. It’s part of being an options trader, but I also think it’s important to limit your positions. Fewer positions makes it easier to manage.
I’m pretty much set up for the next Expiration Day, 9/13. I’ll have a few position expiring and hopefully I’ll get assigned on all.
I really thought this week was going to be a quiet one. Unbelievable! It turned out to be one of the better weeks of the year.
Right now I have to get into the yard and get a start on my weekend work. I guess I’m done trading for the week. Have a great weekend!
Steve
The Options Coach