On 6/30/21 I bought 3 Calls on Advanced Micro Devices (AMD). At the time the stock was at $93.25. I bought 3 AMD 6/17/21 $92.50 Calls for a premium of $15.60. This week the stock is doing well because of great earnings. I just sold the 3 Calls at $20.60 for a $1500 profit.
6/30/21 – Buy to Open 3 AMD 6/17/22 $92.50 C @ $15.60
7/29/21 – Sell to Close 3 AMD 6/17/22 $92.50 C @ $20.60
Profit +$1500
I was in this trade for 1 month. I invested $4680 and sold for $6180 for the $1500 profit. This is a Return on Investment (ROI) of 32% for the 1 month. This trade shows the power of LEAPS options.
This option wouldn’t expire until 6/17/22. I’m a believer in taking profit, especially in this environment. I’m not a big option buyer, but when I do I like long term options. This doesn’t mean I’ll hold long term, it means I like protection from Time Decay. If I kept this Call I might have made more money but you can believe this money will be going to work. I’m very happy with the 32% on this trade!
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Successful trading,
Steve
The Options Coach