Advanced Micro Devices (AMD) announced first-quarter results after the bell on Tuesday, beating analyst estimates. The chipmaker reported a 71% year-over-year revenue increase to $5.89 billion, while adjusted earnings more than doubled to $1.13 per share.
Guidance also came in above expectations with management saying it anticipates $6.5 billion in sales for the current quarter. AMD doesn’t seem concerned about slowing PC sales, and it appears to be taking market share from its rivals in the high-end server chip business.
I am pleased with the report, as it shows that Advanced Micro Devices is a fundamentally sound company despite the drubbing shares have taken this year.
Let’s take advantage of the post-earnings volatility to sell a put. The income we generate will go toward reducing our substantial net debit on the position.
You can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $94.01
Net Debit: $27.53
Action: Sell to open the AMD May Week Two (5/13) 85 Put for around $0.81, but adjust as needed to sell a put today
Current Option Price: $.80 – .82
Recommended Limit: Set your initial limit order at $0.81 but adjust as needed to sell a put today.
Expiration: After the close on Friday, May 13
New Net Debit: $26.72