New Trade! Hello Smart Option Sellers! Hope everyone had a good weekend. As mentioned in Friday's alert, I've had Advanced Micro Devices (AMD) on my radar as a potential put-sell candidate. Here's the current chart. With AMD near $30 per share and undergoing a pull-back to recent support areas, it's time to hop into a new trade. If you follow the semiconductor sector, of which AMD is a player, you might know that many of them, including Intel (INTC), Broadcom (AVGO), & Nvidia (NVDA), have undergone pull-backs of late, blaming it on the U.S./China relations as the tariff situation escalates. So why get into a stock if there's trouble brewing? Because that's usually some of the best times to strike. Yes, there is tension surrounding these types of companies, but all have undergone pull-backs to take some of the steam out of them. Getting in now is like buying the dips. Plus, we always pad our plays with lots of downside protection to guard against any residual selling. Semiconductor stocks manufacture the chips that go into computers, laptops, cell phones, etc - all the hardware that this world is increasingly dependent on now, and for the foreseeable future. They are not going away, so dipping a toe in and hopping into a play is the right thing to do. Here's what you can choose to do: Sell (sell-to-open) the AMD October 18, 2019 $18 put options for a limit sell price of $.25 per contract or higher, GTC, as an opening transaction (sell-to-open). Currently, the market on this put option is $.25 bid/$.26 offer, so let's try to get these done today. If the bid price slips below $.25 per, just keep your sell order working "GTC" for $.25 or higher. Do not sell for anything less than $.25 per contract. With AMD near $30 today, we'll be getting a $12 downside cushion, which equates to a fat 40% buffer. Solid! Get those orders in there now and let us know how you do. Continue to hold all other open positions as-is. Contact us here with fills, comments, questions or concerns. Regards,
Lee Let's Grab That Cash!