If you have been following my AMD moves by reading my emails, I just sold another Call. I bought 1000 shares on Monday at $24.90 and sold a $26 Call for a $600 premium. This morning with AMD pulling back a little I was able to do a Buy to Close for $100, resulting in a $500 profit. With AMD coming back up I just sold another Call to make another Covered Call. I changed my Strike Price from $26 to $25.50. The $25.50 gave me a better premium. I’m a little worried if AMD will go up much higher right now. The RSI shows that the stock is in “over bought” territory. I wanted the lower Strike Price to try to make sure I get assigned. I have 1000 shares and I don’t want to have the stock pull back a few dollars on me. I’d rather get assigned and move on. If my move doesn’t make sense to you please send me an email. I’ve had a great 1st half of the year and I’m trying to keep my profits while I continue to grow slowly.
Sell to Open 10 AMD 8/31/18 $25.50 C @ 40¢ (+$400)
And is still above it’s 200 and 50 day moving average. And it’s also riding above it’s T Line (8 day moving average). However, the RSI is at it’s highest point (about 80) in years which puts it in over bought territory.
Steve
The Options Coach