Advanced Micro Devices (AMD) has surged over the past week. I am recommending we roll our put up to a higher strike while keeping the expiration date the same to generate more income and reduce our net debit on the position.
My goal is to be assigned shares and sell calls so we can take advantage of further potential appreciation.
Current Stock Price: $102.23
Net Debit: $25.88
Action:
- Buy to close the AMD May Monthly (5/20) 93 Put for around $0.25
- Sell to open the AMD May Monthly (5/20) 102 Put for around $2.29
- Set initial credit limit at $2.04, but adjust as needed to roll today
New Net Debit: $23.84