{"id":3452,"date":"2017-09-01T11:43:31","date_gmt":"2017-09-01T15:43:31","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=3452"},"modified":"2017-09-01T12:03:53","modified_gmt":"2017-09-01T16:03:53","slug":"advanced-micro-devices-leaps","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=3452","title":{"rendered":"Advanced Micro Devices LEAPS"},"content":{"rendered":"

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

I’ve been holding 2000 shares of Advanced Micro Devices (AMD) since 6\/26\/17. I bought the stock at $14.39. If you look at my Trade History 2017<\/span><\/a> you’ll see since I bought the stock I sold a few Calls and brought in about $1400 in premiums. However, I was never assigned. At the beginning of August I still owned the stock but the stock has been going down the entire month. I wasn’t selling Calls because I couldn’t get a decent premium. The last few days the stock started making a move so I decided to make a move.<\/p>\n

As you know my trade volume has been down because of my busy summer schedule. With no relief in my schedule in the near future, I decided to look at some longer term options. With my busy schedule I won’t have to monitor a longer term trade on a minute by minute or hour by hour basis.<\/p>\n

These longer term options are called LEAPS (Long-term Equity Anticipation Securities<\/strong>). These options have an expiration date once a year which is the 3rd Friday of January. I’ll be writing more about LEAPS and I’ll be adding a new section in Main Street beats Wall Street<\/strong>. LEAPS are a great investment strategy for people who don’t have the time to monitor the market all day, every day.<\/p>\n

A true LEAPS or LEAP has an expiration date of one year or more into the future. The trade I made today will expire 1\/19\/18, which is only 141 days away, but it has the LEAPS expiration date of the 3rd week in January. Let’s take a look at my LEAP.<\/p>\n

 <\/p>\n

Sell to Open 20 AMD 1\/19\/18 $15 C @ $1.20 (+$2400)<\/h4>\n

 <\/p>\n

As you see a LEAP has a much higher premium because of the Time Value<\/span><\/a>.<\/p>\n

This trade gets a Risk Factor 1<\/strong>. This is a LEAP Covered Call on previously owned stock.<\/p>\n

Even though I bought the stock back on 6\/26\/17 at $14.39, today the stock is at $13.40. With the Strike Price at $15, if I get assigned I’ll make 61\u00a2 on the stock and keep the $1.20 premium. That would be a total of $1.81 with assignment. That will be a 12.5% return on my investment on the stock. This can be a nice return that will expire in about 4 and a half months.<\/p>\n

Watch for my page on LEAPS. This can be a great strategy for traders who want to stay involved but don’t have all the time in the world to put in.<\/p>\n

Also watch for my Week Ending Results<\/strong>. A few days ago I got out of my long running Roll-out with RH. I didn’t get time to post that trade but I’m glad to be out with a little profit. Plus I freed up some margin.<\/p>\n

 <\/p>\n

Steve<\/p>\n

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

I’ve been holding 2000 shares of Advanced Micro Devices (AMD) since 6\/26\/17. I bought the stock at $14.39. If you look at my Trade History 2017 you’ll see since I bought the stock I sold a few Calls and brought in about $1400 in premiums. However, I was never assigned. At the beginning of August […]<\/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-3452","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-TG","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3452","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=3452"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3452\/revisions"}],"predecessor-version":[{"id":3455,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3452\/revisions\/3455"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}