Covered Calls On $AMD

Last week, stocks went a little stale.

We had a host of new news. CPI came in lower than expected, which is what I like to hear as a long-term bull and optimist. Banks are getting a downgrade, which gave traders pause. And the big traders all went on vacation. You’ll notice this is true because all of this news was met with little movement.

The volatility is now paused for the market until the saga starts back up again after Sept 11th.

This is a great time to show you how I traded AMD this summer for a significant profit, even while AMD is down overall.

For this trading series, I used only covered calls and 1 rollout.

I started by buying AMD shares for $119.63.

I sold a covered call for the 122 strike price (SP), collected $320 premium,  and it was worthless on 6/23.

Sold another CC for 120 SP for $54 premium, expired 7/14

Sold CC 118 SP for $226, expired 7/21

Sold CC 117 SP for $56 expired 7/28

Sold CC for 120 SP, $305 premium, expired 8/11

Rolled my current call to $117 to take in $17 more in premium on Friday.

And now it’s Monday and I get to trade this again.

I've taken in $978 in premium on this lot of shares so far.

My cost basis is now $109.85. That’s down $10 per share than what I paid for them.  

I'll probably milk another $500- $1,000 out of these shares before AMD rises above my set strike.

This is how it’s done.

I think this is SIMPLE, EASY + FUN!

My next group event will be all about covered calls.

This is THE event for beginners. But even if you are an expert, I guarantee you will learn a new strategy here to add to your trading arsenal to get bigger gains!