9/10/2022 Plan:
This week we look at Advanced Micro Devices (Ticker: AMD)
9/10/2022 Plan (continued):
- AMD – Sell Oct 7 75/70 put spreads for 0.59
- HD – Sell the Oct 21 270/265 put spread for 0.51
- Prices are as of market close 9/9/2022, 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
9/10/2022 Commentary:
A couple put spreads to choose from (or do both, depending on your account size) this week.
The AMD put spread assumes we hold the 75 level. AMD bounced nicely off of a level a bit below 80 and this assumes the bounce continues or at least doesn’t go far below that recent level.
With the exception of the recent June low, Home Depot (Ticker: HD) has spent a lot of time Above the 280 level. The June low was 264.51. This trade idea assumes we stay above 270 until the October monthly cycle (21st). I like those odds.
Feel free to Reach out with questions on this or anything else!
9/12/2022 Entry:
Sold AMD Sept 30 75/70 put spreads for 0.52 (1 week earlier) can also do Oct 7 74/69 for 0.59.
Sold HD Oct 21 270/265 put spreads for 0.51
9/18/2022 Update:
The AMD put spreads are worth 1.49 and 1.45 for the September and October expirations respectively. The downturn has hit AMD hard and we are near our short strike. Smaller accounts or those that can’t handle a complete loss may want to pull the trigger now and cut losses. We’ve had a lot of recent wins that the impact will be small. Personally, I’m holding. I would probably take shares at this level if AMD landed between 70 and 75.
Speaking of stocks that got hit hard. HD. Ouch. Really took it on the nose on Tuesday. These put spreads are worth 1.65. We have a long time on them and I plan to hold longer.
9/24/2022 Update:
We’re down on the AMD put spreads and if you put on the Sept 30 one, it expires this week. I’m likely going to take shares if it lands between the strikes. One can roll or take the loss if we don’t have a bounce back.
Lots of time left on the HD put spreads, we’re down but haven’t breached the short strike.
10/9/2022 Update:
The AMD put spreads were a total loss. Chips are down even more than the market. Losses will occur from time to time, we move on.
We are down a bit on the HD put spreads, but with 12 days left and $14 between the stock price and our short strike, I will hold on. We’d need a big move down to lose on this one (certainly possible, but I still like the odds)
10/16/2022 Update:
The HD put spreads expire this Friday. We’re looking to hold on to later in the week and close a winner. We need HD to stay at this level (moving up is always nice, too).
10/23/2022 Close:
The HD put spreads expired worthless on Friday, bringing in $51 of profit per put spread sold. Earnings for Home Depot are con November 15th, so another trade in this name Before then is possible (Look at the Nov 11th or before expiration)
