1/8/2022 Plan:
This week we look at AMD (Ticker: AMD)
1/9/2022 Plan (continued):
- AMD – Sell Jan 21 120/115 put spreads for 0.59
- FB – Jan 28 300/295 put spreads for 0.45+
- JWN – Sell the Feb 11 19 put for 0.25
- Prices are as of market close 1/7/2022, 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
1/9/2022 Commentary:
With AMD having a big sell off, this first trade is a bit risky. It is short term – just two weeks and is a trade that assumes AMD won’t sell off another $12 in that time. If there is continuation on Monday, we may roll strikes lower or pass entirely. I would like to see it stabilize a bit, so this trade may go on later in the week.
FB will need to sell off a bit more to be able to put the trade on. It is currently priced at about 0.42, which is a little lower than I’d like to take.
The JWN trade assumes we don’t go below the recent lows of 18.95. It has been trending up nicely and as this doesn’t include earnings is a reasonably ‘safe’ trade. As with any put sale, we should assume the ‘worst’ and that we will be assigned. Pass if you don’t want to own shares or are willing to take a loss if JWN does plummet.
Feel free to Reach out with questions on this or anything else!
1/10/2022 Entry:
Recommend waiting for market to stabilize for most ppl.
Put spreads in FB and AMD Are available at lower strikes and higher prices (115/110 for 0.68 in AMD, 290/285 for 0.52 in FB). JWN Feb 11,18 put for 0.24.
1/16/2022 Update:
The AMD put spreads expire this week and are worth only 0.04 or 0.05 for a quick win. Highly unlikely that these will switch to a loser in 5 trading days, but no harm in closing for a few bucks and booking the win.
The FB put spreads expire Next week and are worth 0.12. If I see an opportunity to close this week for closer to 0.05, I’ll likely take it, otherwise I’ll let them continue to decay.
We are roughly flat on the JWN short puts – these still have a lot of time and we’re pretty far out of the money. No planned action this week – we’ll wait and look to capture some decay.
1/22/2022 Update/Partial Close:
The AMD put spreads did expire worthless this week. Some members closed early to lock it in and didn’t have to ‘sweat’ at the end of the week during the big sell-off. Either way, a nice win where we picked up $68 per put spread sold in just 11 days.
We are down on the put spreads with the big sell-off. If you did take this trade, there isn’t too much to do other than see if FB holds above 290 (currently trading above 300). With the high volatility, one could actually roll this out another week and pull in a credit. Personally I plan to hold with the assumption FB doesn’t drop another $10. I will re-evaluate based on the market on Monday.
We are down on the JWN puts as IV has gone up quite a bit. With still $2 between the stock price and our short put, I plan to hold. If the market settles down, IV will drop and this should be profitable. If it doesn’t, I’m prepared to take shares at 18.
1/30/2022 Update/Partial Close:
The Facebook (errr Meta Platforms) put spreads expired worthless, adding $104 of profit to our accounts ($52/spread). Facebook has earnings this week and I won’t put another trade on in the name this week. Next week however….
The JWN puts are a little bit profitable – $2.5 per put sold. I’ll continue to hold with the decay likely to start kicking in more towards the end of this week.
2/6/2022 Update:
The JWN puts should expire worthless this week. They are only worth 0.03 and can be closed at any time. This should be a nice win for our members!
2/13/2022 Close:
The JWN puts we sold expired worthless, adding another $24 of profit for each put sold. That closes out the trades from January 10th – all winners.
