I was filled on 2 trades. 1 with Advanced Micro Devices (AMD) and 1 with Marvell (MRVL).
On Friday I sold a 10 contract Call on 1000 shares of AMD I already own. This is a $31 Call. As I write the stock is up to $32.20. It’s only Monday, but if things continue up with the stock I’ll get assigned on that Call.
I like AMD because it’s on the cutting edge of Tech. It does have a habit of moving up and down, so with the stock up big today I sold another 10 contract Call; only this Call is Naked in anticipation of it pulling back. I sold 10 contracts of the 10/25/19 $33 Calls. If it was covered I would have sold the $32.50, but the $33 Call gives me a little room before it gets to my Strike Price.
Sell to Open 10 AMD 10/25/19 $33.00 C @ 30¢ (+$300)
Since I went up on the Strike Price I received a little less of a premium. However, it’s still very close to a 1% return. I also placed a Buy-Stop order at $32.90. If the stock gets that high I’ll buy the shares to cover the Call. Because of the Buy-Stop order this trade gets a Risk Factor 2.
My next trade was a Buy-Write with Marvell(MRVL). I bought 1000 shares at $23.90 and sold 10 contracts of the 10/25/19 $24 Calls for a premium of 35¢. This premium is a 1.5% return and fits into my “1 Week/1%” strategy.
Buy 1000 Shares of MRVL @ $23.89
Sell to Open 10 MRVL 10/25/19 $24.00 C @ 35¢ (+$350)
This Buy-Write is a Covered Call on a very good stock with multiple buy ratings so the trade gets a Risk Factor 1.
Get used to the name Marvell. I will be involved in this stock very much in the near future. I’ll be writing a big report on Marvell because of a big change I have planned with Main Street beats Wall Street. Stay tuned and get ready to make some money.
Please take a look at a page I made some changes to. The page is “Today’s Most Active Options.” I added some great info.
Successful trading,
Steve
The Options Coach