On Monday I sold a 10 Contract Naked Call with Advanced Micro Devices (AMD). This Call has a Strike Price of $96. Today the stock is moving on an announcement that AMD is expanding business with Amazon Web Services (AWS). With 3 day until expiration I decided to cover my Naked Call. I think it will turn out to be a good idea. I bought 1000 shares of AMD at $94.75.
Buy 1000 Shares AMD @ $94.75
As I write the stock is up $2.50. I hope it keeps moving and I get assigned. This would give me another $1.25 ($1250) on top of my $1100 premium.
This is now a Covered Call on a very good stock so it now has a Risk Factor 1.
Successful trading,
Steve
The Options Coach