5/23/2021 Plan:
This week we look at your choice of chip manufacturers – Intel and AMD (Tickers: INTC, and AMD)
5/23/2021 Plan (continued):
- AMD – Sell the Jun 18th 70/67.5 put spreads for 0.28 or the 72.5/70 put spreads for 0.47
- INTC – Sell the Jun 11th 53.5/51.5 put spreads for 0.24
- DKNG – Sell the Jun 11th 40/36 put spreads for 0.44
- Prices are as of market close 5/21/2021, 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
5/23/2021 Commentary:
Coke or Pepsi? McDonalds or Burger King? Tastes Great or Less Filling (Ok, dating myself with that one). Like many products where there are two leaders, in the tech world, people often show a preference for Intel’s or AMD’s chips. This week, pick your favorite and sell a put spread in that name!
AMD offers a pretty high premium for the 72.5/70 put spreads or you can increase the probability of a win and sell a bit lower for less premium. Intel is a bit more straightforward and we assume it won’t go below its recent lows in the 53.40 range. Of the two, I prefer the AMD trade. If you put them Both on, note that you are doubling your exposure to chips. We’ll track them both.
For a higher volatility name, the DKNG put spreads expiring on the 11th look good. DKNG hit a low of 39.93 on the 13th and have since risen over 10%. This trade assumes we won’t revisit that level over the next few weeks. This is a more volatile name and a riskier trade. No harm in skipping it if you’d prefer to limit the volatility in your portfolio.
Feel free to Reach out with questions on this or anything else!
5/24/2021 Entry:
Sold the Jun 18 AMD 71/69 put spreads for 0.23. INTC and DKNG not currently available, will watch.
5/31/2021 Update:
The AMD put spreads are down to 0.08, which is a good one week return. We are about $9 out of the money, and I will probably leave it as is this week. We still have 3 weeks so if you need to free up some margin or reduce risk, this is an easy one to take off.
6/6/2021 Update:
The AMD put spreads are now down to 0.03. With 2 weeks left, I am going to try and take them off. Kind of a long time to keep the risk on for $1.5/week…
6/6/2021 Close:
As suggested in last week’s update, I closed the put spreads for 0.03 (and opened a new AMD trade!). If you still have them open, they expire this week – very likely worthless.
