AMD experienced a significant drawdown on the last trading day, falling almost 5.5%, while Nvidia, the market leader, dropped by 10%. This caught me off guard, as I had thought the option contract with a strike of 150 would likely expire worthless when I opened it over a week ago. However, I've decided to take assignment of the stock instead of rolling it over. Now, I plan to switch to selling covered call options instead of put options. As for whether AMD will fall further in this correction, it's a possibility. However, I'm confident that AMD will be significantly higher once the market rebounds.
Meanwhile, looking to sell a near term covered call option against this newly acquired underlying, likely just 1 week up to this Friday as next week it is AMD's earnings report, will see how this CC goes by end of the week before deciding if will open another one or wait till after earnings provided this lot has not already too deep in the money to be called away by end of the week.
Comments