I’ve owned 2000 shares of Advanced Micro Devices (AMD) for a while now. On these shares I’ve been selling Calls and bringing in nice premiums. On 9\/1\/17 I sold 20 contracts of the 1\/19\/18 $15 Calls for a premium of $1.20. These 1\/19\/18 Calls are considered LEAPS, long terms options. On 9\/20\/17 I bought another 500 shares and on 10\/12\/17 I sold another 5 Calls with the same Strike Price, expiration date and premium of $1.20. At this point I owned 2500 shares of AMD and have 25 contracts of the 1\/19\/18 $15 Calls sold.<\/p>\n
Yesterday AMD announced earnings and today the stock is down. The earnings were good but AMD gave a poor 4th quarter outlook. With the stock down, the $1.20 premium I received, was down to 49\u00a2. When I sold with the premium at $1.20 I received a total premium of $3000. Now that the premium is down to 49\u00a2, I was able to do a “Buy to Close” for a total of $1225. I sold for $3000 and bought back for $1225 for a total gain of $1775. There was still 87 days until expiration so I felt it was a good time to get out and lock in profit. If the stock moves back up I can have another opportunity to sell another Call.<\/p>\n
Sell to Open 25 AMD 1\/19\/18 $25 C @ $1.20 (+$3000)<\/p>\n
Buy to Close 25 AMD 1\/19\/18 $25 C @ 49\u00a2 (-$1225)<\/p>\n
Profit +$1775<\/strong><\/span><\/p>\n <\/p>\n I love buying to close and locking in profit! Especially when there’s a lot of time left until expiration.<\/p>\n <\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I’ve owned 2000 shares of Advanced Micro Devices (AMD) for a while now. On these shares I’ve been selling Calls and bringing in nice premiums. On 9\/1\/17 I sold 20 contracts of the 1\/19\/18 $15 Calls for a premium of $1.20. These 1\/19\/18 Calls are considered LEAPS, long terms options. On 9\/20\/17 I bought another […]<\/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-3718","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-XY","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3718","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=3718"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3718\/revisions"}],"predecessor-version":[{"id":3719,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3718\/revisions\/3719"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}