{"id":6301,"date":"2019-11-11T10:04:33","date_gmt":"2019-11-11T15:04:33","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=6301"},"modified":"2020-04-23T12:20:21","modified_gmt":"2020-04-23T16:20:21","slug":"sold-10-naked-calls-on-advanced-micro-devices","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=6301","title":{"rendered":"Sold 10 Naked Calls on Advanced Micro Devices"},"content":{"rendered":"

\"\"<\/a>I feel Advanced Micro Devices (AMD) will be pulling back so I just sold 10 Naked Calls.<\/p>\n

AMD has been a very hot stock and some may think I crazy for selling a Naked Call. But after looking long at the Candlestick Chart I see the stock staying below $36.50 this week. In addition to the Candlestick Chart the oscillators RSI<\/a> <\/span>indicates an overbought situation.<\/p>\n

With the stock at $35.00 I was filled on my order. I sold 10 AMD 11\/15\/19 $36.50 Calls and received a premium of 50\u00a2 for $500.<\/p>\n

Sell to Open 10 AMD 11\/15\/19 $36.50 C @ 50\u00a2 (+$500)<\/strong><\/p>\n

With the stock at $35 this is a Rate of Return<\/a><\/span> of 1.4%. With this Call expiring this Friday this trade fits into my \u201c1 Week\/1%<\/a><\/span>\u201d strategy. Remember it\u2019s not the amount of money you make, it\u2019s the amount you make on your investment, Rate of Return.<\/p>\n

As you might know Naked Calls are my favorite strategy. This is making money with NO investment. The Rate of Return I mentioned above is if I bought the stock with a Covered Call.<\/p>\n

A Naked Call does present a problem if the stock goes up so I placed an order to buy the stock at $36.45. If the stock goes up to $36.45 the stock will automatically be bought into my account to cover the Naked Call. A Naked Call gets a Risk Factor 5 but with my Buy-Stop Order in place this trade gets a Risk Factor 3<\/strong>. There\u2019s always a chance of the stock going up over night and my order will not get filled.<\/p>\n

I will be watching this position closely all week.<\/p>\n

I would like to welcome our new readers. If you have any questions send me an email.<\/p>\n

Successful trading,<\/p>\n

Steve<\/p>\n

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

I feel Advanced Micro Devices (AMD) will be pulling back so I just sold 10 Naked Calls. AMD has been a very hot stock and some may think I crazy for selling a Naked Call. But after looking long at the Candlestick Chart I see the stock staying below $36.50 this week. In addition to […]<\/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-6301","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\/p75MP0-1DD","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6301","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=6301"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6301\/revisions"}],"predecessor-version":[{"id":7500,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6301\/revisions\/7500"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}