AMD - Sell Puts strategy

[rakeshna]

There was a new strategy that was laid out in the last newsletter for AMD. Selling Jan puts. My order didn't go through. What is the new sell put target that is recommended for AMD, given that it is at $56 today.

[SOL]

There was a new strategy that was laid out in the last newsletter for AMD. Selling Jan puts. My order didn't go through. What is the new sell put target that is recommended for AMD, given that it is at $56 today.

No official play to sell puts was discussed. It was a strategy that we were discussing. Please move slowly when it comes to options. Don't jump into options trading until you spend some time reading up on selling puts, and then only sell puts on stocks you want to own.

[Yodean]

There was a new strategy that was laid out in the last newsletter for AMD. Selling Jan puts. My order didn't go through. What is the new sell put target that is recommended for AMD, given that it is at $56 today.

nfa, my2c:

amd is up a touch atm ... as you know you generally want to sell puts when stock is red;

still currently amd's cheap as a snowball in alaska, so you could sell put w/ delta < 0.30 in the 4 - 6 week expiration period:

e.g. amd sell put strike 50, expiration nov18/22

[SOL]

It's is very cheap. I will probably go 50% higher than initially planned so take a position of 150% instead of 100. But I will deploy in lots. The last lot should have been triggered based on the last MU entry points