Let’s book profits on our Taiwan Semiconductor Manufacturing (TSM) bull put spread, earning a 3.8% return in six days, or 231% annualized. Current Stock Price: $97.37 Cash in Hand: $0.29 Action: Buy to close the TSM Feb Monthly (2/17) 92 Put for around $0.14 Sell to close the TSM Feb Monthly (2/17) 87 Put for…
Below are the trades from today’s Income Masters Live Trading Session. TRADE ONE: Sell to open Walt Disney (DIS) Feb Monthly (2/17) 111 Put for around $1.12. You can go as low as $1.02, but please don’t start there and always use limit orders. (Current stock price: $113.75) TRADE TWO: Sell to open CVS Health…
As with Advanced Micro Devices (AMD), Taiwan Semiconductor Manufacturing (TSM) is another failed recovery position in which we are deep underwater. Although I remain bullish on the chip sector, in general, and TSM, in particular, near-term economic uncertainty and bearish sentiment are winning out and could continue to do so for the foreseeable future. Thus,…
I am recommending we roll the short leg of our Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing (TSM) LEAP call spreads out one week to capture more income and reduce our cost basis on the positions. Please note that we will be looking to exit these positions next week or the week after rather…
The chip sector has found a short-term bottom, and the calls we sold on Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing (TSM) are in the money. I am recommending we roll out a few weeks and to higher strike prices to avoid being called out and to capture more potential appreciation. AMD Jan 2023…
Our Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing (TSM) protective puts are on track to expire worthless. We will simply watch them do so. AMD popped this week following the release of the company’s earnings report. Although revenue and EPS missed expectations by a hair, revenue rose 29% year over year. Earlier this month,…
I am recommending we roll the short legs of our Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing (TSM) LEAP call recovery positions out three weeks to generate more income. I then want to use some of that cash to purchase protective puts to hedge our positions ahead of Apple’s (AAPL) earnings, which are set…
The protective puts we purchased to hedge our Taiwan Semiconductor Manufacturing (TSM) LEAP call recovery position and Walgreens Boots Alliance (WBA) buy-write are on track to expire worthless. We will simply watch them do so. TSM reported better-than-expected revenue and earnings this week and raised its guidance for the current quarter. This bodes well for…
I am recommending we roll the short legs of our Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing (TSM) LEAP call spreads out two weeks to generate more income and reduce our cost basis on the positions. Given that TSM is expected to report earnings tomorrow, I am recommending we use the cash we generate…
The protective put we purchased on Taiwan Semiconductor Manufacturing (TSM) is on track to expire worthless. We will simply watch it do so. By rolling our hedge, we were able to reduce our cost basis on the position by $4.84 ($6.08 in profit booked minus $1.24 initial cost of hedge). Note: No action is needed…
