{"id":5846,"date":"2019-10-04T12:46:28","date_gmt":"2019-10-04T16:46:28","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=5846"},"modified":"2019-11-30T17:52:48","modified_gmt":"2019-11-30T22:52:48","slug":"sold-10-amd-calls-3","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=5846","title":{"rendered":"Sold 10 AMD Calls"},"content":{"rendered":"

\"\"<\/a>I just sold 10 Calls on Advanced Micro Devices (AMD), but this trade comes with a little story.<\/p>\n

On 9\/16\/19 I bought 1000 share of AMD at $30.95 and sold a $31 Call at the same time. This Short Call gave me a premium of $600. When the Call expired on 9\/20 I kept the $600 premium and I was not assigned. Again, on 9\/23, I sold another $31 Call which gave me a $520 premium. This Call expired on 9\/27 and again I was not assigned. At this point I brought in $1120 in premiums and I still own the stock. The only problem is the stock is a little too much below where I purchased to get a decent premium if I sold another $31 Call. As I write the stock is at $28.85. If I sell a $31 Call to expire next Friday I would only get a premium of 10\u00a2. Thats only $100 and it\u2019s not worth the trouble.<\/p>\n

I did not get a Call sold on AMD this week and this does not sit well with me. If I\u2019m holding 1000 shares of this stock I want to bring in weekly premium money.<\/p>\n

While looking at my account I see I\u2019ll have enough money in my account at the close today to buy another 1000 shares of AMD. I don\u2019t want to buy another 1000 shares, but, the money is in my account if I wanted to.<\/p>\n

While trying to figure a way to bring in a premium on this stock I came up with an idea. I originally bought the stock at $30.95 and the stock is at $28.85. I decided to sell a 10 contract $30 Call, which had a premium of 30\u00a2, for $300. I don\u2019t think the stock will hit $30 by next Friday, and I hope it doesn\u2019t because if I\u2019m assigned at $30 I\u2019ll lose $1 on the stock sale for a loss of $950. I will not let this happen! If the stock approaches my Strike Price of $30 I\u2019ll use the money available in my account to buy another 1000 shares to cover this Call. I will not use the stock I bought at $30.85. I\u2019ll have to watch the stock very closely next week to see if it get to the $30 area.<\/p>\n

Sell to Open 10 AMD 10\/11\/19 $30 C @ 30\u00a2 (+$300)<\/strong><\/p>\n

This 30\u00a2 might not seem like a great premium but it is 1%, 30\u00a2 on a $30 stock. This trade fits into my \u201c1 Week\/1%<\/a><\/span>\u201d strategy. Even if I used my $30.95 stock to cover this Call and I got assigned I would end up ahead. Remember I already brought in $1120 in premium.<\/p>\n

I do have to watch this trade closely if I don\u2019t want to get assigned with my existing stock, so it gets a Risk Factor 2<\/strong>.<\/p>\n

This $300 premium is the start of next week\u2019s income. I\u2019m hoping to add another $1000. Let\u2019s see if I can do it.<\/p>\n

Steve<\/p>\n

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

I just sold 10 Calls on Advanced Micro Devices (AMD), but this trade comes with a little story. On 9\/16\/19 I bought 1000 share of AMD at $30.95 and sold a $31 Call at the same time. This Short Call gave me a premium of $600. When the Call expired on 9\/20 I kept the […]<\/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-5846","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\/p75MP0-1wi","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5846","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=5846"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5846\/revisions"}],"predecessor-version":[{"id":6495,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5846\/revisions\/6495"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}