I’m having a busy, multi-tasking day. About 10am, right after the market opening, I had to hit my back yard to do some work. Next Saturday I have an Oktoberfest at my house that usually get about 100 people. I’m way behind in my work because of my shoulder surgery. It’s feeling a lot better so it’s time to get my work done. I have 1 more week.
I’m a little worried about Advanced Micro Devices (AMD) so I set up my computer by my back door so I could check the market once in a while. As I’m power washing my paving stone and furniture I just stick my head in the door.
I own 1000 shares of AMD at $32. It’s been pretty volatile lately. As I’ve been reporting, I feel it’s in an “over bought” situation. I feel if it starts to go down it could go down 20%. If that happens I really don’t want to be holding 1000 shares. On Monday I sold a 10 contract Call and ended up doing a “Buy to Close” on Tuesday. The stock came down a bit and I locked in a $600 profit. Today I started the day with the 1000 shares and no Calls against them. While workin the back yard I kept looking through the door to see what the stock was doing. I saw it was moving up. As I’m leaning through the door I get a phone call on my cell for a large pizza order lol. While I’m taking the order for Fiore’s Pizza and trying to figure out how I could make it work. I sold a 10 contract Call expiring next Friday. I sold 10 AMD 9/28/18 $33.50 Calls for 75¢ for a total premium of $750. I’m doing this leaning in the door because I’m too dirty and wet to come in the house lol. Now that I got my Call sold I have to call Fiore to tell the guys about the large order. I get this done and I noticed AMD continued to move up. With the stock at $32.35, leaning in the door I put in an order to sell my shares at $32.30. I felt it was gonna reverse so I wanted out. I sold the shares making $300, but I now have a Naked Call with the Strike Price of $33.50. Still making a few calls about the pizza order and leaning in the door the stock started moving down. I did a little power washing, looking at the computer every few minutes. The stock was down to the point that the premium for my $33.50 Call was down to 40¢. I was in the Call for a very short time and I decided to do a “Buy to Close” and lock in a $350 profit. I was filled on the order, I’m completely out of AMD, and I went back to power washing with no more interruptions. I’m sorry for the long story but thats the way it went lol.
Today’s trades
9/21/18 – Sell to Open 10 AMD 9/28/18 $33.50 C @ 75¢ (+$750)
9/21/18 – Buy to Close 10 AMD 9/28/18 $33.50 C @ 40¢ (-$400)
Profit $350
Sell 1000 Shares AMD @ $32.30
Profit $300
I hope this all makes sense. I just stopped working in the yard and I wrote this report.
Have a great weekend!
Steve
The Options Coach