{"id":3188,"date":"2017-06-14T10:12:20","date_gmt":"2017-06-14T14:12:20","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=3188"},"modified":"2017-06-14T10:12:20","modified_gmt":"2017-06-14T14:12:20","slug":"advanced-micro-devices-buy-write","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=3188","title":{"rendered":"Advanced Micro Devices “Buy-Write”"},"content":{"rendered":"

\"\"<\/a><\/p>\n

Soon after the opening I did a “Buy-Write<\/span><\/a>” with Advanced Micro Devices (AMD). For you Grasshoppers<\/span><\/a>, a “Buy-Write” is a Covered Call where you buy the stock and sell a Call at the same time.<\/p>\n

I bought 2000 shares of AMD at $11.98 and I sold 20 contracts of the AMD 6\/16\/17 $12 Calls for a premium of 25\u00a2. On the 20 contracts the total premium is $500. This is a 3 day option. This trade fits into my “1 Week\/1%<\/span><\/a>” strategy, however, the sale of the Call gives me more than 1% and the trade is a 3 day option. It’s actually a 2% Rate of Return<\/span><\/a>. I would like to see AMD go up and stay above my $12 Strike Price into Friday so it expires In-the-Money<\/span><\/a>. If this happens I’ll get assigned, keep the premium and this deal would be over. Let’s see how it works out. This is a Covered Call on a very good stock so this trade gets a Risk Factor 1<\/strong>. Below see the 2 trades that make up the “Buy-Write.”<\/p>\n

 <\/p>\n

\u00a0Buy 2000 Shares AMD @ $11.98<\/h4>\n

 <\/p>\n

Sell to Open 20 AMD 6\/16\/17 $12 C @ 25\u00a2 (+$500)<\/h4>\n

 <\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Soon after the opening I did a “Buy-Write” with Advanced Micro Devices (AMD). For you Grasshoppers, a “Buy-Write” is a Covered Call where you buy the stock and sell a Call at the same time. I bought 2000 shares of AMD at $11.98 and I sold 20 contracts of the AMD 6\/16\/17 $12 Calls for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-3188","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-Pq","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3188"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3188\/revisions"}],"predecessor-version":[{"id":3189,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3188\/revisions\/3189"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}