{"id":3354,"date":"2017-07-18T10:19:33","date_gmt":"2017-07-18T14:19:33","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=3354"},"modified":"2017-07-18T10:19:33","modified_gmt":"2017-07-18T14:19:33","slug":"buy-to-close-20-advance-micro-devices","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=3354","title":{"rendered":"Buy to Close 20 Advance Micro Devices"},"content":{"rendered":"

I had a 20 contract Covered Call with Advanced Micro Devices (AMD) with the Call expiring this Friday. Yesterday I sold another 20 contract Call to expire next week July 28th. Both with a $15 Strike Price. You can read about the Call I sold yesterday at Advance Micro Devices Naked Call<\/span><\/a>. In this post I explain that I didn’t think I would be assigned this Friday because I didn’t believe the stock would hit the $15 Strike Price. So… I sold another Call that was Naked but would become Covered once the Call expiring this Friday, expired. It would become covered because I would still own the 2000 shares without assignment on my existing Covered Call<\/p>\n

I was talking to my broker at Charles Schwab yesterday and I explained that if the premium of an option fell below 5\u00a2 they should let me “Buy to Close” with no commission so I could free up some cash for another trade. I got the idea from my son in-law Bob who has that deal with his broker. Bob is Main Street beats Wall Street’s<\/strong> contributing writer who wrote out Advanced Technical analysis<\/strong> section.<\/p>\n

AMD was down yesterday and is down today. The premium was down to 2\u00a2. I decided to Buy to Close the option expiring this Friday which was $40 (2\u00a2 X the 20 contracts). I received $500 when I sold the Call and just did a Buy to Close for $40, so I have a profit of $460. I made this trade commission free because the premium was under 5\u00a2. This trade did 2 things for me. It freed up some margin if I’m interested in making another trade this week, plus, I no longer have a Covered Call and a Naked Call. I only have a Covered Call which expires next Friday the 28th. That Naked Call had a Risk Factor 5 on it but now that it’s covered it’s now Risk Factor 1<\/strong>.<\/p>\n

7\/12\/17- Sell to Open 20 AMD 7\/21\/17 $15 C @ 25\u00a2 (+$500)<\/p>\n

7\/18\/17 \u2013 Buy to Close 20 AMD 7\/21\/17 $15 C @ 2\u00a2 (-$40)<\/p>\n

Profit +$460<\/strong><\/span><\/p>\n

 <\/p>\n

If you have any questions on my free commission trades or why I made this trade send me an email.<\/p>\n

 <\/p>\n

Steve<\/p>\n

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

I had a 20 contract Covered Call with Advanced Micro Devices (AMD) with the Call expiring this Friday. Yesterday I sold another 20 contract Call to expire next week July 28th. Both with a $15 Strike Price. You can read about the Call I sold yesterday at Advance Micro Devices Naked Call. In this post […]<\/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-3354","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-S6","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3354","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=3354"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3354\/revisions"}],"predecessor-version":[{"id":3355,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3354\/revisions\/3355"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}