Advanced Micro Devices (AMD) is rallying today following the release of Intel’s (INTC) earnings, giving us a chance to profitably close a position that was underwater a day ago.
Speaking of Intel, sitting out earnings was the right call, as the stock is down more than 10% today despite the company reporting better-than-expected earnings. We have an ongoing position in the stock with a net debit. We will look to sell a put to reduce that net debit once the earnings dust settles.
Current Stock Price: $81.13
Cash in Hand: $1.09
Action: Buy to close the AMD Oct Week Four (10/23) 80 Put
Current Option Price: $0.15-$0.17
Recommended Limit: Set your initial limit order at $0.16, but adjust as needed to close today
Profit: $0.93, or $93 per contract
Rate of Return: 1.2% in four days, or 106% on an annualized basis