1/22/2022 Plan:
This week we look at AMD (Ticker: AMD (you knew that already…))
1/22/2022 Plan (continued):
- AMD – Sell Feb 18 95/90 put spreads for 0.59 *WARNING* includes earnings
- BAC – Sell Feb 18 42/39 put spreads for 0.35
- SPLK – Sell Feb 18 95/90 put spreads for 0.48
- ABNB – For larger accounts, look at the Feb 11 130 put sale for 1.30
- Prices are as of market close 1/21/2022, 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
1/22/2022 Commentary:
AMD’s implied volatility is quite high as there has been a big drop off in the name going to last November. This combined with the overall market downturn makes selling options attractive. This is a HIGH risk trade as it includes earnings. I think AMD will have trouble going and staying below 100, though, and this trade will pay off if that assumption holds.
The BAC put spread is a fairly straightforward play – BAC has been solidly above 42.5 and rising rates should help the banks.
SPLK is quite speculative, so keep that in mind before putting it on.
I really like ABNB long term and would add shares at the 130 level (currently trading at 156.74). This will require $13k to take the shares with cash, so please pass on the trade or spread it if you don’t want shares.
BIG Reminder – the market is VERY volatile and you do Not have to place new trades until it settles down. Protect your capital – especially if you are trading a smaller account.
Feel free to Reach out with questions on this or anything else!
1/24/2022 Entry:
For smaller accounts – pass on most trades given the market volatility. AMD 80/75 Feb 18 for 0.56. Also filled ABNB Feb 4 115 put for 2.76 and SPLK Feb 18 95/90 for 0.62
1/30/2022 Update:
What a week. All three positions are doing very well given the bounce back in the market Monday (although the rest of the week was still pretty wild). The AMD put spreads are down the 0.24 and still have a few weeks to go.
The ABNB put expires this week and is only worth about 0.17. I will likely close to take the quick (big) win.
The SPLK put spreads are worth 0.41, a small winner, and I plan to leave the position alone this week.
2/6/2022 Update/Partial Close:
As alerted, I closed out the AMD put spreads after it bounced back last week for only 0.02. That takes the risk off the table and adds $54 of profit per spread to our accounts!
As mentioned last week I closed the ABNB put as planned for only 0.03. That’s a win of $273 per put sold. A great return in a short period of time.
The SPLK put spreads are performing great. They are only worth 0.11 at this time. I will plan to leave them on for a bit longer to try and collect more decay. Expiration is Feb 18.
2/13/2022 Update/Partial Close:
The SPLK put spreads are still profitable and expire this week. There was BIG news in the name, with Cisco making a takeover offer of $20B, which launched SPLK to around $127 in after hours trading on Friday. That should keep our put spreads WELL out of the money and I plan to let them expire worthless. If they can be taken off very cheaply, I may do so.
2/21/2022 Close:
The SPLK put spreads expired worthless – $62/put spread sold of profit. Nice. With the takeover discussions, that may put a floor under the name and may be a good name to continue to trade put spreads in.
