Most readers know I’ve owned 2000 shares of Advanced Micro Devices (AMD) for some time now. The stock has been in the $12 area for the last 2 weeks and I’ve been selling Calls. I currently have a $12.50 20 contract Covered Call position and I just sold another 20 contract Call. Since I only own 2000 shares, this Call is a Naked Call. Last Wednesday when I sold the Covered Call I received a premium of 40\u00a2. Today with the stock at $11.70 I received a 32\u00a2 premium. A 32\u00a2 premium on a 11.70 stock is a fantastic 2.7% 5 day return. This Call will expire this Friday!<\/p>\n
<\/p>\n
This trade is a Naked Call so it gets a Fisk Factor 5<\/strong>. Naked Call are dangerous trades but I’ll be watching closely. Also, I’ll put a “Buy Stop” order to buy the 2000 shares if the stock gets up to $12.90. I don’t want to own another 2000 shares but if it takes a big jump I’ll get my Naked Call covered at $12.90 before it hits my Strike Price.<\/p>\n <\/p>\n Steve<\/p>\n The Option Coach<\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Most readers know I’ve owned 2000 shares of Advanced Micro Devices (AMD) for some time now. The stock has been in the $12 area for the last 2 weeks and I’ve been selling Calls. I currently have a $12.50 20 contract Covered Call position and I just sold another 20 contract Call. Since I only […]<\/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-4086","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\/p75MP0-13U","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4086","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=4086"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4086\/revisions"}],"predecessor-version":[{"id":4087,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4086\/revisions\/4087"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}