AMD - my approach today

    Posted by DigiNomad on 15th of Mar 2023 at 03:57 pm

    AMD - my approach today was buying a May 90/95 call spread (100% return possibility if it closes above 95 by May) and financing the debit spread by selling a May 75/60 put spread. It was almost a zero dollar trade. I like the 75 level for selling puts as it is just below the last higher low and under the 200 EMA.

    Just noticed that this appears to be a 5th wave - I might sell some more upside calls to pull in some more credit. 

    Great to see a succesful

    Posted by mundy on 26th of Mar 2023 at 10:27 pm

    Great to see a succesful options trade Diginomad. I have been tracking the trade which shows $190 out of max $480 profit so far. Did you sell any more puts or put spreads? Are you going to hold until expiry?

    Thanks Mundy. I took 2/3

    Posted by DigiNomad on 26th of Mar 2023 at 11:13 pm

    Thanks Mundy. I took 2/3 off already. I'm going to let the rest run for a while. At this point, it's just a waiting game. 

    Great option trade DigiNomad. Could

    Posted by mundy on 15th of Mar 2023 at 04:09 pm

    Great option trade DigiNomad. Could you post an analysis(risk/reward) chart.  

    It was closer to a

    Posted by DigiNomad on 15th of Mar 2023 at 04:15 pm

    It was closer to a zero dollar trade when I put it on, but close enough.

    *I likely wouldn't take the loss on the downside and instead take ownership of the stock with a $75 collar cost basis. 

    Here's the call spread only.

    Posted by DigiNomad on 15th of Mar 2023 at 04:23 pm

    Here's the call spread only. Basically a 100% return possibility with 46% probability of profit.  

    Thanks DigiNomad. I have plotted

    Posted by mundy on 15th of Mar 2023 at 05:13 pm

    Thanks DigiNomad. I have plotted the trade on my TOS platform and will watch it develop.!

    Very nice trade indeed !

    Posted by fredsaid on 26th of Mar 2023 at 10:31 pm

    Very nice trade indeed !  I'd call it an Expert level trade.  Not sure how I missed it.  I just bought a simple 94-91 weekly put spread a couple days ago - Novice trade), expecting reversion to mean to 94.

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