Yesterday I bought 1000 Shares of Advanced Micro (AMD) and sold a 10 Contract Call. I sold the Call for $1 for a $1000 premium. Today the stock is down and the premium is down to 40¢ so I did a “Buy to Close” to get out of the Calls. I received a $1000 premium and I just bought the Calls back for 40¢ ($400) so I locked in a $600 profit. Today is only Tuesday so if the stock moves tomorrow I’ll try to sell another Call. Or if the stock moves a lot I’m no longer obligated to deliver the stock, I can enjoy the stock gain. Let’s watch and see what the stock does for the rest of the week.
9/17/18 – Sell to Open 10 AMD 9/21/18 $33.50 C @ $1.00 (+$1000)
9/18/18 – Buy to Close 10 AMD 9/21/18 $33.50 C @ 40¢ (-$400)
Profit $600
Any questions why I made this move send me an email.
Steve
The Options Coach