6/6/2021 Plan:
This week we return to some favorites, like AMD (Ticker: AMD)
6/6/2021 Plan (continued):
- AMD – Sell the Jul 16th 72.5/70 put spread for 0.26
- DAL – Sell the Jul 2nd 43/41 put spreads for 0.33
- JWN – Sell the Jul 2 28.5 put for 0.28+
- Prices are as of market close 6/4/2021, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
6/6/2021 Commentary:
AMD has a lot of support at 72.5, bouncing right off that level in mid May and hasn’t gone below that level since last July. This trade assumes that trend continues through this July. We have about $9 between the current price and the strike price and the lower end of premium reflects that distance and the high probability of the trade. Note that we have AMD on currently, but with a recommended close for 0.03 – don’t forget to take that off or you will be doubling your exposure to AMD.
Lots of different ways to trade DAL – if you prefer a higher probability play, the 42/40 for >0.20 is ok or on could go a week earlier for 0.22 or so. This is basically the same trade we just closed last week – IV continues to be priced above the actual movement of DAL and we look for that trend to continue.
We’ll try again to sell a JWN put near the 28 level and would consider as high as 30. As with any short put, be willing to take the shares – so you should have the cash in your account for each put you sell. The IV is a bit lower than I would prefer for this trade, so depending on how the market opens, I may pass.
Feel free to Reach out with questions on this or anything else!
6/7/2021 Entry:
Sold AMD Jul 16 72.5/70 put spreads for 0.28. Sold JWN Jul 2 28.5 puts for 0.29. Entries available for DAL at lower premiums. I held off.
6/13/2021 Update:
The AMD put spreads are down to 0.17 – a better move than expected after just one week – no complaints!
The JWN puts have also decayed and can be bought back for 0.08 at the mid-point. Wide spreads right now, so it would probably cost a bit more to close. I’m planning to leave it open this week.
6/20/2021 Update:
The AMD put spreads are down to 0.09 – Big move up in AMD last week and the last few cents in these spreads will take a while to come out as we still have almost 4 weeks left in the trade! At only ~0.02/week (on average), this isn’t a ton of premium so feel free to close and re-allocate if you are light on capital. Otherwise these should slowly decay until expiration.
We are down a bit on the JWN puts. I’m holding for now as our strike is still about 3.5 away. If JWN closes below 30, I’ll re-assess.
6/27/2021 Update:
I closed my AMD put spreads for 0.03 rather than waiting another 3 weeks for just 0.01/week. If you didn’t, feel free to close at any time.
The JWN puts are nicely profitable and expire this week. I plan to let it expire worthless. If you need to free up margin, you can close this cheaply and bank a win.
7/5/2021 Close:
The JWN puts expired worthless, bringing us $29 profit per put sold! That closes out this particular week’s trade ideas and a couple more winners for those that took the trades Enjoy!
