Advanced Micro Devices (AMD) is rallying today ahead of the company’s scheduled earnings announcement after the close.
The premium on the longer-term put we sold has dropped below our target exit price. Let’s close it now, earning more than 60% of our max profit and an excellent rate of return.
Current Stock Price: $116.83
Cash in Hand: $2.55
Action: Buy to close the AMD 25 Aug 99 Put
Recommended Limit: Set your initial limit order at $0.95, but adjust as needed to close today
Profit: $1.60, or $160 per contract
Rate of Return: 1.6% in 21 days