{"id":5570,"date":"2019-08-27T12:08:09","date_gmt":"2019-08-27T16:08:09","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=5570"},"modified":"2019-10-03T09:45:43","modified_gmt":"2019-10-03T13:45:43","slug":"buy-to-close-my-amd-call","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=5570","title":{"rendered":"Buy to Close My AMD Call"},"content":{"rendered":"<p>Back on May 28th I sold a Call on Advanced Micro Devices (AMD). This morning with the stock down I did a \u201cBuy to Close.\u201d<\/p>\n<p>I own 1000 shares of AMD and I sold a 10 contract, $35 Call to expire on 1\/17\/20. I received a premium of $2.65. When I sold the Call the stock was at $28.75. Today with the stock down at $29.90 the premium was $2.15. The stock is actually higher than when I sold the Call, but since I sold the Call back on May 28th there has been some <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.mainstbeatswallst.com\/?page_id=444\">Time Decay<\/a><\/span>. This is what I love about selling Calls, Time Decay is on your side. When I sold the Call I received a premium of $2.65 for $2650. Today I did a \u201cBuy to Close\u201d for a premium of $2.15. This means I gave back $2150 of the $2650. Since I made this trade to close the position I locked in a profit of $500. You must understand Short Positions.<\/p>\n<p style=\"text-align: center;\"><strong>5\/28\/19 \u2013 Sell to Open 10 AMD 1\/17\/20 $35.00 C @ $2.65 (+$2650)<\/strong><\/p>\n<p style=\"text-align: center;\"><strong>8\/27\/19 \u2013 Buy to Close 10 AMD 1\/17\/20 $35.00 C @ $2.15 (-$2150) <\/strong><\/p>\n<h4 style=\"text-align: center;\">\u00a0<span style=\"text-decoration: underline;\"><strong>Profit +$500<\/strong><\/span><\/h4>\n<p>This may not sound like much of a profit but in today\u2019s market environment \u00a0I love to lock in money. The volatility is crazy. The Call I sold still had 5 months until expiration. So much can happen in that time. I decided to lock in $500 and watch to see what happens. If the stock moves up I can sell another Call for another premium. Also if Trump and China work on a trade deal the market will get a pop. If the stock goes above $35, which was my Strike Price, I no longer have to deliver the 1000 shares. Like I said, I left $2150 on the table and it might not seem like a great deal now, but what ever happens, I still have $500 locked in!<\/p>\n<p>What really makes this day special is Trump has been quiet. I feel he might have learned a little from the market\u2019s big drops as a result of his tweets. Let\u2019s hope so!<\/p>\n<p>Steve<\/p>\n<p><em>The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Back on May 28th I sold a Call on Advanced Micro Devices (AMD). This morning with the stock down I did a \u201cBuy to Close.\u201d I own 1000 shares of AMD and I sold a 10 contract, $35 Call to expire on 1\/17\/20. I received a premium of $2.65. When I sold the Call the [&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-5570","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\/p75MP0-1rQ","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5570","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=5570"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5570\/revisions"}],"predecessor-version":[{"id":5822,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5570\/revisions\/5822"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}