I am recommending we roll the short leg of our Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing (TSM) LEAP call spreads out one week to capture more income and reduce our cost basis on the positions.
Please note that we will be looking to exit these positions next week or the week after rather than carrying them into the new year. When we officially close the positions, I will share my outlook for both stocks so you can decide whether you want to continue on with them. If you decide to, you can email me with any questions you may have.
AMD Jan 2023 (1/20/23) 70/Dec Week Two (12/9) 73 Call Spread
Note: No action is needed on the AMD Jan 2023 (1/20/23) 70 Calls at this time.
Current Stock Price: $70.10
Cost Basis: $98.74
Action:
- Buy to close 3 AMD Dec Week Two (12/9) 73 Calls for around $0.14 each ($0.42 total)
- Sell to open 3 AMD Dec Monthly (12/16) 73 Calls for around $1.44 each ($4.32 total)
- Set initial credit limit at $1.30 ($3.90 total), but adjust as needed to roll today
New Cost Basis: $94.84
TSM Jan 2023 (1/20/23) 70/Dec Week Two (12/9) 72 Call Spread
Note: No action is needed on the TSM Jan 2023 (1/20/23) 70 Calls at this time.
Current Stock Price: $80.94
Cost Basis: $98.43
Action:
- Buy to close 4 TSM Dec Week Two (12/9) 72 Calls for around $8.95 each ($35.80 total)
- Sell to open 4 TSM Dec Monthly (12/16) 72 Calls for around $9.05 each ($36.20 total)
- Set initial credit limit at $0.10 ($0.40 total), but adjust as needed to roll today
New Cost Basis: $98.03