ARM Holdings' recent earnings report delivered a softer revenue forecast, sending ripples across the semiconductor sector and triggering a modest sell-off in early trading. AMD felt the impact, initially dipping but managing to recover to a mere -0.8% by close.
The covered call option with a $160 strike set to expire today appears to hold little value, prompting consideration for another call option at market open, likely a short-term one-week contract. Depending on AMD's opening market price, options might include the $157.5 or $160 strike, with the aim of capturing around $100 in premiums.
Meanwhile, there's another Cash Secured Put in play, with a $143 strike expiring at the end of next week. From a technical perspective, AMD appears confined within a range of $160 and $145, with $145 serving as a double bottom and potentially supported by the 50-day EMA at that level while the upper range been rejected twice by the 20-day EMA.
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sell coverd call + sell secured put… good strategy!