Let’s book profits on our Advanced Micro Devices (AMD) put.
I am also recommending we roll our Bank of America (BAC) and Micron Technology (MU) positions.
Finally, if you own shares of Intel (INTC) uncovered, I am recommending a call to sell.
AMD Aug Week One (8/7) 81 Put
Current Stock Price: $86.58
Cash in Hand: $0.98
Action: Buy to close the AMD Aug Week One (8/7) 81 Put
Current Option Price: $0.07-$0.08
Recommended Limit: Set your initial limit order at $0.08, but adjust as needed to close today
Profit: $0.90, or $90 per contract
Rate of Return: 1.1% in four days, or 102% on an annualized basis
BAC Aug Week One (8/7) 24.50 Call
Current Stock Price: $25.55
Cost Basis: $25.26
Action:
- Buy to close the BAC Aug Week One (8/7) 24.50 Call for around $1.06
- Sell to open the BAC Aug Monthly (8/21) 25 Call for around $1
- Set your initial debit limit at $0.06, but adjust as needed to roll today
New Cost Basis: $25.32
Expiration: After the close on Friday, Aug. 21
Potential Rate of Return: I am targeting breakeven for this position
INTC Uncovered Shares
Current Stock Price: $48.42
Cost Basis: $60.71
Action: Sell to open the INTC Aug Monthly (8/21) 49 Call
Current Option Price: $0.88-$0.90
Recommended Limit: Set your initial limit order at $0.89, but adjust as needed to sell a call today
New Cost Basis: $59.82
Expiration: After the close on Friday, Aug. 21
Potential Rate of Return: I am targeting breakeven for this position
MU Aug Week One (8/7) 52 Put
Current Stock Price: $49.26
Net Debit: $1.76
Action:
- Buy to close the MU Aug Week One (8/7) 52 Put for around $2.77
- Sell to open the MU Aug Monthly (8/21) 52 Put for around $3.37
- Set your initial credit limit at $0.60, but adjust as needed to roll today
New Net Debit: $1.16
Expiration: After the close on Friday, Aug. 21
Potential Rate of Return: I am targeting breakeven for this position