The chip sector has found a short-term bottom, and the calls we sold on Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing (TSM) are in the money.
I am recommending we roll out a few weeks and to higher strike prices to avoid being called out and to capture more potential appreciation.
AMD Jan 2023 (1/20/23) 70/AMD Nov Monthly (11/18) 70 Call Spread
Note: No action is needed on the AMD Jan 2023 (1/20/23) 70 Calls at this time.
Current Stock Price: $73.61
Cost Basis: $99.04
Action:
- Buy to close 3 AMD Nov Monthly (11/18) 70 Calls for around $4.50 each ($13.50 total)
- Sell to open 3 AMD Dec Week Two (12/9) 73 Calls for around $4.60 each ($13.80 total)
- Set initial credit limit at $0.10 ($0.30 total), but adjust as needed to roll today
New Cost Basis: $98.74
TSM Jan 2023 (1/20/23) 70/Nov Monthly (11/18) 70 Spread
Note: No action is needed on the TSM Jan 2023 (1/20/23) 70 Calls at this time.
Current Stock Price: $73.12
Cost Basis: $98.03
Action:
- Buy to close 4 TSM Nov Monthly (11/18) 70 Calls for around $3.55 each ($14.20 total)
- Sell to open 4 TSM Dec Week Two (12/9) 72 Calls for around $3.45 each ($13.80 total)
- Set initial debit limit at $0.10 ($0.40 total), but adjust as needed to roll today
New Cost Basis: $98.43