The market has been choppy lately with a downward bias due to concerns about interest rates and the spillover of those concerns from bond to equity markets.
Fed Chair Jerome Powell said in his speech today that the economic reopening could cause inflation, but he also said the price increases likely would not be enough to cause the Fed to raise rates. Yet, the market responded by moving sharply lower.
I am recommending we roll our Advanced Micro Devices (AMD) and Micron Technology (MU) positions.
AMD Mar Week One (3/5) 87 Call
Current Stock Price: $78.35
Cost Basis: $83.91
- Buy to close the AMD Mar Week One (3/5) 87 Call for around $0.03
- Sell to open the AMD Mar Week Two (3/12) 85 Call for around $0.46
- Set your initial credit limit at $0.43, but adjust as needed to roll today
New Cost Basis: $83.48
MU Mar Week One (3/5) 89 Put
Current Stock Price: $84.31
Cash in Hand: $0.83
- Buy to close the MU Mar Week One (3/5) 89 Put for around $4.90
- Sell to open the MU Mar Week Two (3/12) 89 Put for around $5.75
- Set your initial credit limit at $0.85, but adjust as needed to roll today
New Cash in Hand: $1.68