5/7/2022 Plan:
This week we take a look at Advanced Micro Devices (Ticker: AMD)
5/7/2022 Plan (continued):
- AMD – Sell the Jun 3 80/75 put spreads for 0.61
- Prices are as of market close 5/9/2022, 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
5/7/2022 Commentary:
With earnings now behind us, all we have to deal with is the incredible volatility of the rest of the market… While the broad market sold off on Friday, AMD held up well and was actually up almost 1.50. I like AMD long term and this trade gives us over $15 of room before the short strike. Could AMD drop that low? Absolutely – but I still like the risk/reward on this trade given how much it would have to drop. I’d probably add shares at that level, too.
The market is VERY volatile, so no harm in passing on trades until things settle down.
Feel free to Reach out with questions on this or anything else!
5/9/2022 Entry:
Sold AMD Jun 3 75/70 put spreads for 0.76. Market is still down. Ok to pass on opportunities until it bottoms.
5/14/2022 Update:
The AMD put spreads can be closed for 0.29, which would give us an immediate $47 profit per put spread sold after just one week. With three weeks left, one could definitely take the quick win if they need to re-allocate capital and/or want to take off some risk given the market’s volatility.
5/22/2022 Update:
The AMD put spreads can be closed for 0.22 and with 2 weeks left, I may take off part of my size to reduce overall market risk and bank some profits. I have lots of trades to place tomorrow, though, so I may not get to it. You can certainly remove it if you’d like!
5/27/2022 Close:
I had a resting order to close the AMD put spreads for 0.01 and it filled on Friday. If you still have them on, close any time this week. This was a nice winner of $75/spread.
