🔒 Premium Membership Positions - January 16, 2022

Hi Advanced Traders!

Many of you have been setting up bear call spreads with me over the past several weeks. It's a powerful trade as the goal is to have theta decay away our option legs.

Let's set up some more bear call spreads this week.

AMD Bear Call Spreads

This week, let's continue to roll our bear call spreads and/or open new positions. We can see that AMD is still trending in a downward pattern, which is why I have a short-term bearish outlook on this stock.

Expiration Date: February 4, 2022

Step 1: Buy 1 $175 strike call option with a delta 0.06 for $52

Step 2: Sell 1 $160 strike call option with a delta 0.15 for $142

Step 3: Set a buy stop order of 100 shares at $159

Credit received: $142 - $52 = $90

The goal is for AMD to stay under $159 from now until February 4. If AMD rallies up towards $160, we will buy 100 shares at $159 each, sell our purchased call option, and convert our trade into a covered call.

As always, feel free to tweak the width of your spreads to your risk tolerance. If you don't feel comfortable with setting up spreads during earnings season, you can wait afterwards.

Have a wonderful weekend! 😀

Steve and the Call to Leap Team

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