Profit Adjustment - AMD
Profit Adjustment - Advanced Micro Devices (AMD) Hello Smart Option Sellers! We placed an order yesterday to buy back our put-sell position on the AMD February 15, 2019 $15 put options for $.10 per contract. Unfortunately we were unable to get filled. It was close, but no cigar. We're going to adjust the price today as AMD will release earnings after the bell. With AMD sharing some of the semiconductor spotlight with Nvidia Corp (NVDA), who has lowered their own earnings forecasts of late, some believe AMD could follow. NVDA stock has taken a bit hit recently, and if AMD releases a dud, its stock price could drop more than we'd like to see. Currently, AMD stock is trading at $19.25 per share, putting it over $4 above our $15 strike price. This is still a good cushion, but the stock dropped almost $7 per share after the last earnings release, so I don't want to chance it. I'm all about taking money off the table when we have it, instead of rolling the dice (except in certain circumstances). So let's go ahead and adjust our buy price from yesterday. All we're doing is raising the price. So if you have your order working "GTC", then all you have to do is raise the price in your order. Here's what you can choose to do: Note: you will only execute this trade if you already hold the put-sell position in your account. If you don't have the position, you can disregard these instructions. Buy back (buy-to-close) all of your AMD February 15, 2019 $15 put options for a limit buy price up to $.20 per contract or lower, Day-Order, as a closing transaction (buy-to-close). Currently, this put option has a market of $.16 bid/$.17 offer, so we should be able to buy it back at the moment for less than $.20 per. A few Notes 1. You are still more than welcome to do nothing and just hold the play through earnings. If AMD puts out good numbers, the stock should rally and the put option price will drop hard. This could lead to a larger profit on the put-sell trade. 2. If you want to follow along with us and adjust your price today, the trade could be higher than $.17 per contract by the time you enter your order. If this is the case, it's ok to pay up to $.20 per contract. 3. Make sure you designate the order "Day-Order", not "GTC". This trade is only good for today. I will send an update tomorrow morning on the results. That's all for now. Get those orders in there and let us know how you do. Continue to hold all other open positions as-is. Contact me here with fills, comments, questions or concerns. Regards,
Lee Let's Grab That Cash!