The short legs of our Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing (TSM) recovery spread positions are on track to expire worthless.
After a strong July, the chip sector was hit hard in August on concerns about falling demand. As you know, I take a long-term view of the industry and think these fears are overblown. Therefore, I believe we could see a bounce in the sector.
I will recommend new calls to sell soon to generate more income.
AMD Jan 2023 (1/20/23) 70/Sep Week One (9/2) 95 Call Spread
Current Stock Price: $82.82
Cost Basis: $112.24
Action: Watch the 3 AMD Sep Week One (9/2) 95 Calls expire worthless
TSM Jan 2023 (1/20/23) 70/Sep Week One (9/2) 92 Call Spread
Current Stock Price: $82.46
Cost Basis: $116.23
Action: Watch the 4 TSM Sep Week One (9/2) 92 Call expire worthless