Ever since I got assigned the underlying shares of AMD from a cash-secured put option in the third week of April, I have been selling covered call options, ready to have the shares called away as part of my Wheel Strategy with this stock lot.
Over the past few weeks, I’ve sold several weekly call options (typically 5-12 days). While two of these options expired worthless, I chose to buy-to-close the rest. The implied volatility (IV) on AMD has been higher over the past six weeks, causing significant price movements. This volatility often made the options profitable within just 2-3 days, providing good opportunities to close them out, take profits, and wait for new opportunities to resell options when the price moved back up.
For instance, my most recent call option was sold on a Thursday, expiring the following Friday. However, the market experienced significant turmoil on Friday, causing AMD and other stocks to tumble. This made the option profitable, and I closed it out with over a 55% gain in just over a day. AMD recovered most of its lost position by the end of Friday, presenting a new opportunity to resell call options.
I’m plan to sell another call option, likely expiring that same Friday as I’m expecting an uptrending market when it opens later today!
@Daily_Discussion @CaptainTiger @TigerEvents @TigerStars @MillionaireTiger
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Expect to see value prices of close to 180
If the feds keep their mouth shut, I think AMD will do well
Any Day AMD Loses Less than 3 Percent is a Victory for the Bulls