Option Strategies: SMCI, AVGO& AMD
Hello everyoone! Today i want to share some option stratgies with you!
1.
Long-term investing in tech is dead as of 2020! Stock market gets pumped and dumped and months-to-years of value erased in the snap of the fingers to where there is no gain or you are now sitting on a loss. What incentive is there to invest for the long-term anymore?
Seems like this market has paradigm-shifted (since the influx of retail traders during the pandemic) into stealing liquidity from retail versus creating long-term monetary benefits for investors and shareholders.
Curious to hear what everyone else thinks. What are your thoughts?
2.
Let's get some optionselling loss porn going. We had a horrible week to the tune of a $15K drawdown! ❌ Our few weekly trades were profitable, but our longer-DTE option-writing trades on $SUPER MICRO COMPUTER INC(SMCI)$ $Broadcom(AVGO)$ $Advanced Micro Devices(AMD)$ were jeopardized.
The put strikes were not breached, but to further protect ourselves we rolled the positions farther out and to lower strikes in case these tickers fall down more ... and also to position us for better entry at lower prices. SMCI was the killer. Our trade was sitting at $1K+ profit on Thursday and then ended up at a big loss on Friday. We get that not pre-releasing earnings would cause a sell-off, but to the tune of 20% ... come on!
That unfortunately killed the rest of the semi/AI stocks, taking AMD and AVGO (as well as NVDA and ARM) along with it. Anyways, we're still net-positive for the year, and while we realized a loss on the SMCI AVGO AMD rolls, we're still technically in the trades and have a chance to close it out for net profit if all ends well.
The annoying part is that we now tie up our buying power on these trades for a longer timeframe. Is what it is ... we can always close it to get out and free up the bp.
Image
Follow me to learn more about analysis!!
https://twitter.com/Selling4Premium
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.
