{"id":4931,"date":"2019-04-08T12:47:13","date_gmt":"2019-04-08T16:47:13","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=4931"},"modified":"2019-04-20T10:17:40","modified_gmt":"2019-04-20T14:17:40","slug":"buy-to-close-advanced-micro-devices-calls","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=4931","title":{"rendered":"Buy to Close Advanced Micro Devices Calls"},"content":{"rendered":"<p>On Friday I sold 8 AMD 4\/12\/19 $29.50 Calls on 800 shares of Advanced Micro Devices (AMD) I own. Today I did a \u201cBuy to Close\u201d to exit that position.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>I sold this Call for 61\u00a2 and I did the \u201cBuy to Close\u201d for 29\u00a2. If you are a new trader you must understand <a href=\"http:\/\/www.mainstbeatswallst.com\/?page_id=446\">Short Positions<\/a> to understand a \u201cBuy to Close.\u201d I sold the Call for 61\u00a2 with a \u201cSell to Open\u201d and I closed the position with a \u201cBuy to Close\u201d for 29\u00a2. That gave me a 32\u00a2 profit. On the 8 contracts, 800 shares, it\u2019s a profit of $256.<\/p>\n<h4 style=\"text-align: center;\">Sell to Open 8 AMD 4\/12\/19 $29.50 C @ 61\u00a2 (+$488)<\/h4>\n<h4 style=\"text-align: center;\">Buy to Close 8 AMD 4\/12\/19 $29.50 C @ 29\u00a2 (-$232)<\/h4>\n<h4 style=\"text-align: center;\"><span style=\"text-decoration: underline;\">Profit +$256<\/span><\/h4>\n<p>I have a rule. If I sell an option and I can get out of the position in a day, or the same day, with over 50% of the premium, I close the position and move on. This position I got into on Friday and got out today, Monday, the next trading day. I still have 5 days in the week. A lot can happen in the week. I might get another Call sold, the stock might move above my Strike Price and I\u2019ll get that gain in the stock, maybe I do nothing. Either way, I keep the profit I made with the closing of the position. I\u2019m a believer in taking profit. In all my years trading I\u2019ve seen a lot happen; and you never know what is gonna happen. I like to take profit and see if another opportunity arises to make more profit. If not, I settle with what I got.<\/p>\n<p>Today I bought another 200 shares of AMD. I now own 1000 shares. With the closeing of the above position my next Call will probably be a 10 contract Call. The 1st 800 shares I bought for $29.50. The next 200 I bought for $28.90. My average cost is $29.38. Now if I sell a $29.50 Call and get assigned I\u2019ll make 12\u00a2 on the 1000 shares ($120) in addition to the premium.<\/p>\n<p>Let\u2019s keep an eye on AMD. It\u2019s not moving great today but I think it will soon. Let\u2019s hope! lol<\/p>\n<p>Steve<\/p>\n<p><em>The Options Coach<\/em><\/p>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Friday I sold 8 AMD 4\/12\/19 $29.50 Calls on 800 shares of Advanced Micro Devices (AMD) I own. Today I did a \u201cBuy to Close\u201d to exit that position.\u00a0 I sold this Call for 61\u00a2 and I did the \u201cBuy to Close\u201d for 29\u00a2. If you are a new trader you must understand Short [&hellip;]<\/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-4931","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\/p75MP0-1hx","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4931","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=4931"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4931\/revisions"}],"predecessor-version":[{"id":4955,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4931\/revisions\/4955"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}