@mster：$(AMD)$ Four months ago, I embarked on a Wheel Strategy with AMD. The moment of truth arrived in the third week of April when my Cash Secured Put with a strike price of $150 was met, and the underlying shares were assigned. For the past seven weeks, I've been actively selling Covered Calls against this lot of 100 shares. While a few of these options expired worthless, most were bought to close within a few short days, capturing quick profits whenever the odds favored me. The total profit from the initial put option and the subsequent call options amounted to $780. Additionally, the profit from the underlying stock itself was $1,750. In total, this seven-week wheel cycle yielded a handsome profit of $2,530. Had I merely held onto the underlying stock, it would have netted me $1,750 over the past seven weeks, assuming I sold at Friday's close. However, by employing basic options strategies, I managed to pocket an extra $780. It's important to remember that this is a trade, not an investment. Trading seeks to capitalize on market volatility, squeezing out additional profits beyond the norm. If I had ample funds, AMD would certainly be a long-term hold for its growth potential. However, with limited resources, I need to put in extra effort—monitoring price actions and seizing opportunities whenever they arise to maximize my advantage. I could have rolled this last call option to a higher strike price, extending it to next week or later, as I believe there’s still room for AMD to climb. However, I’m ending this wheel strategy here to free up funds for my next venture: wheeling Nvidia. With Nvidia undergoing a 10-1 stock split and its shares soon to be in the $100 range, I can now deploy the same funds to wheel Nvidia. Oh boy, I’m looking forward to that! PS: No, I will never even try wheel on GameStop. 😂 @MillionaireTiger @TigerStars @TigerEvents @CaptainTiger @Daily_Discussion Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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