Selling puts on strong stocks

Interesting...we have our eye on many of the same stocks...I put on a diag put on AMD Mar 40/ Jul 37.5...hoping it would stay above 40 for Mar looking more like I'll be rolling....rolling...rolling:p

sold out of WM looking to pick up more...holding PFE..haven't a clue what I'll do with it!
 
Stupid TXN and INTC :)

And yet, we're still holding the 38s. I'm well hedged now and have both the 37.50 pegging and the 50 day to support me. Max Pain is still at 40 so the MMs don't want this thing to free fall.

In short, it's dicey, but still ok.

WM is looking like a pretty good entry real soon. 200MA coming up and it's hitting the bottom of it's trading channel. I'll hope for a bump up here to move over that way, markets allowing :p
 
If it trades like a sideways slug than selling premium is a good way to take advantage of those slugs LOL.

Quote from coolweb:

why do you trade intc and len?

both move like slugs :D
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Dear lord - so much for being well set. My hedges are keeping me at minimal losses though. I'm gonna have to study the charts a bit to see if I can identify some support. I don't know if I'm ballsy enough to sell the hedges low and ride it back up :)
 
Fighting myself here.

I currently have a losing trade on my hands - but just barely. I have hedged 1/2 my potential profits away, but those hedges are what has made me able to hold for as long as I have. With AMD sitting at 37.10 and showing no relative strength, the industry in general sucking, and the market in general trending downards, the odds are starting to go against a miraculous recovery here. That leaves me with a few choices:

1. Admit defeat and selloff my stock/calls (synthetic put) and hold the 35 put lottery tickets a bit longer. Roll into a different stock that is showing better support.

2. Turn the position into a April covered call at 37.50 for a nice $1.75 of additional premium.

3. Sell the april 35 calls instead for more protection and enough premium to cover this month's loss plus a touch more.

4. Do nothing for a few more days, hope for either a hard drop or a large rise. Theta is actually hurting me if the stock stays between 36 and 37.

This stock loves to be option pegged so 37.50 is still a strong attraction point as is 40, but we're a bit too far from there right now. An argument for 35 could be made as well, but most of the sell premium is between 37.50 and 40.

Verdict? #4. AMD has been hella volatile for the last few weeks. Lets see if we can get a big swing to bail us out.
 
I have watched AMD over the last few days. And all I can say is wow. Thought about selling bull spread, just didn't have the balls to do it.
 
Quote from Miked0801:

Fighting myself here.

I currently have a losing trade on my hands - but just barely. I have hedged 1/2 my potential profits away, but those hedges are what has made me able to hold for as long as I have. With AMD sitting at 37.10 and showing no relative strength, the industry in general sucking, and the market in general trending downards, the odds are starting to go against a miraculous recovery here. That leaves me with a few choices:

1. Admit defeat and selloff my stock/calls (synthetic put) and hold the 35 put lottery tickets a bit longer. Roll into a different stock that is showing better support.

2. Turn the position into a April covered call at 37.50 for a nice $1.75 of additional premium.

3. Sell the april 35 calls instead for more protection and enough premium to cover this month's loss plus a touch more.

4. Do nothing for a few more days, hope for either a hard drop or a large rise. Theta is actually hurting me if the stock stays between 36 and 37.

This stock loves to be option pegged so 37.50 is still a strong attraction point as is 40, but we're a bit too far from there right now. An argument for 35 could be made as well, but most of the sell premium is between 37.50 and 40.

Verdict? #4. AMD has been hella volatile for the last few weeks. Lets see if we can get a big swing to bail us out.
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fwiw..#4 would be my choice...you seemed to have thought it out well...next few trading days could be somewhat volitile...so you may get your big up or down...after that you need to really take a look at it to decide what your next move is. disclaimer...I have a put calendar on it! nevertheless GL:)
 
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