Let’s close our Advanced Micro Devices (AMD) position. Our strategy of selling an in-the-money put paid off big time and we are booking a large profit.
I am also recommending we sell a call on our uncovered Microsoft (MSFT) shares. This will lower our cost basis to the point that we will book a profit if we are called out in two weeks.
AMD Oct Week Two (10/9) 80 Put
Current Stock Price: $82.16
Cash in Hand: $5.25
Action: Buy to close the AMD Oct Week Two (10/9) 80 Put for around $1.74
Profit: $3.51, or $351 per contract
MSFT Uncovered Shares
Note: No action is needed on the MSFT Oct Monthly (10/16) 200/195 Put Spread at this time.
Current Stock Price: $209.92
Cost Basis: $212.45
Action: Sell to open the MSFT Oct Week Two (10/9) 210 Call for around $3.87
New Cost Basis: $208.58