New Trade! Hello Smart Option Sellers! It's been a tad over a month since we've had a new trade. I haven't gone AWOL - It's just that the market hasn't given me anything worthy to work with. We always stress safety, and if there's nothing there, we won't push it. But today we have something... Advanced Micro Devices (AMD) AMD has been one of the best performing stocks of the last six months - jumping from $10 back in April to just over $34 in September. That's an incredible $24 move with a return of 240%! It has recently pulled back over the last month and now sits near $28. AMD is a computer chip-maker and has always played second fiddle to Intel (INTC). We currently have a put-sell position on INTC, but I've been kicking myself these past few months for not jumping on AMD. Microprocessor chips are the core of what makes computers run. Without them, we have nothing! Lol. Part of AMD's recent run-up was the fact that they were able to supply the newest chips while Intel was lagging behind with supply issues. AMD has been around all these years and Intel has never been able to put them out of business. I believe these two companies will continue to battle it out, while both remaining relevant. Each company could deserve a place in most investor's portfolios, so we're going to hop into a new trade on AMD. The recent pull-back in AMD's price takes some froth out of its move, but that's a good thing as it gives us an opportunity to get in. Here's the current weekly chart of AMD.
The move higher occurred back in April 2018 from $10 per share. We're going to sell a put option with roughly 46% downside cushion, which would take it close to an area of solid support near $15 per share. Here's what you can choose to do: Sell (sell-to-open) the AMD February 2019 $15 put options for a limit sell price of $.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Currently, this put option has a $.25 bid/$.35 offer (a bit wide), so let's try to sell these more in the middle of the spread. It is in all of our best interests to let the market come to us. Try placing your initial sell order maybe near $.30 per contract to start, just to see if someone bites. If not, you can incrementally move your offer lower. DO NOT under any circumstances sell it for lower than $.25 per contract. That's all for now. Continue to hold all other positions as-is. Get those orders in now and let us know how you do. Contact me here Regards,
Lee Let's Grab That Cash!