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<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "We bought shares at $ 28.50 and sold the calls that remained 15 days before the expiry for $ 1.25 each."data-reactid =" 23 ">We bought shares at $ 28.50 and sold the calls that remained 15 days before the expiry for $ 1.25 each.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "The trade has worked well as AMD has rallied throughout the 30-strike and is currently trading at $ 33.75 / share. This puts our calls firmly in the stock and if stocks stay above the $ 30 level at the end of next week, we will sell the stock, leaving us a profit of $ 2.75."data-reactid =" 24 ">The trade has worked well as AMD has rallied throughout the 30-strike and is currently trading at $ 33.75 / share. This puts our calls firmly in the stock and if stocks stay above the $ 30 level at the end of next week, we will sell the stock, leaving us a profit of $ 2.75.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "That's a 10% gain in just over two weeks – excellent performance."data-reactid =" 25 ">That's a 10% gain in just over two weeks – excellent performance.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "Two weeks ago, in Know Your Options, we discussed covered calls "up and out", redeemed calls already sold and simultaneously sold calls with a higher strike and a longer term to avoid selling shares and continue to participate. in a rally."data-reactid =" 26 ">Two weeks ago, in Know Your Options, we discussed covered calls "up and out", redeemed calls already sold and simultaneously sold calls with a higher strike and a longer term to avoid selling shares and continue to participate. in a rally.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "Is this a good idea in our AMD business?"data-reactid =" 27 ">Is this a good idea in our AMD business?
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "No."data-reactid =" 28 ">No.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "The AMD trade has worked so well so quickly that launching and going out do not make much sense. Our September 30 calls are over $ 3 and are currently trading at about $ 4. To sell another call with a higher strike and a longer term of about $ 4, we had to make the calls on November 35, which would add 56 days to our transaction and bring in only $ 5 more, or the January 37th. calls that would add $ 7 more in profit opportunity, but add 119 days."data-reactid =" 29 ">The AMD trade has worked so well so quickly that launching and going out do not make much sense. Our September 30 calls are over $ 3 and are currently trading at about $ 4. To sell another call with a higher strike and a longer term of about $ 4, we had to make the calls on November 35, which would add 56 days to our transaction and bring in only $ 5 more, or the January 37th. calls that would add $ 7 more in profit opportunity, but add 119 days.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "Given the speed with which we realized our profit of 10%, none of these elements seems to constitute a profitable trade."data-reactid =" 30 ">Given the speed with which we realized our profit of 10%, none of these elements seems to constitute a profitable trade.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "There is one thing we might want to consider, though. Locking profit."data-reactid =" 31 ">There is one thing we might want to consider, though. Locking profit.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "At the moment, we can still lose on trade if AMD were to turn the tide and fall back below $ 30 / share before it expires next Friday. If we were to go below $ 27.25 / share, we would give up all the profits from the transaction and below that, we would actually start losing money."data-reactid =" 32 ">At the moment, we can still lose on trade if AMD were to turn the tide and fall back below $ 30 / share before it expires next Friday. If we were to go below $ 27.25 / share, we would give up all the profits from the transaction and below that, we would actually start losing money.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "The September 30 options are trading around $ 0.40. If we buy one for every 100 shares we own, we can make a profit of $ 2.35 and forget the trade because we will have no risk. It's still a 8.5% profit in a single week – a very successful business."data-reactid =" 33 ">The September 30 options are trading around $ 0.40. If we buy one for every 100 shares we own, we can make a profit of $ 2.35 and forget the trade because we will have no risk. It's still a 8.5% profit in a single week – a very successful business.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "It is mainly a question of personal risk tolerance. There is no right or wrong answer. In this situation, if a trader wants to "let it go" and wait for the expiry next Friday, hoping that AMD shares will remain above $ 30, giving us a maximum profit, that is to say. is a perfectly rational decision. possibility."data-reactid =" 34 ">It is mainly a question of personal risk tolerance. There is no right or wrong answer. In this situation, if a trader wants to "let it go" and wait for the expiry next Friday, hoping that AMD shares will remain above $ 30, giving us a maximum profit, that is to say. is a perfectly rational decision. possibility.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "If the same trader wanted to lock more profit, stop thinking about the job and move on to the next opportunity, it's quite rational too."data-reactid =" 35 ">If the same trader wanted to lock more profit, stop thinking about the job and move on to the next opportunity, it's quite rational too.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "There is not always a correct answer."data-reactid =" 36 ">There is not always a correct answer.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "Stocks today from Zacks' hottest strategies It's hard to believe even for us at Zacks. But while the market grew + 21.9% in 2017, our best selection screens posted a + 115.0%, + 109.3%, + 104.9%, + 98.6% and + 67.1%. And this outperformance has not only been a recent phenomenon. Over the years, he has been remarkably consistent. From 2000 to 2017, the average compound annual gain for these strategies exceeded the market by more than 19X. What is perhaps even more remarkable is the fact that we are ready to share their last stocks with you at no cost or obligation. See them for free >>"data-reactid =" 37 ">Stocks today from Zacks' hottest strategies It's hard to believe even for us at Zacks. But while the market grew + 21.9% in 2017, our best selection screens posted a + 115.0%, + 109.3%, + 104.9%, + 98.6% and + 67.1%. And this outperformance has not only been a recent phenomenon. Over the years, he has been remarkably consistent. From 2000 to 2017, the average compound annual gain for these strategies exceeded the market by more than 19X. What is perhaps even more remarkable is the fact that we are ready to share their last stocks with you at no cost or obligation. See them for free >>
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "
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