Happy New Year Advanced Traders!
Let's set up some more bear call spreads as some of our favorite stocks are still trending neutrally.
AMD Bear Call Spreads
This week, let's continue to roll our bear call spreads and/or open new positions. We can still see that AMD is trending between $131 and $163.
Expiration Date: January 21, 2022
Step 1: Buy 1 $200 strike call option with a delta 0.02 for $17
Step 2: Sell 1 $165 strike call option with a delta 0.15 for $126
Step 3: Set a buy stop order of 100 shares at $164
Credit received: $126 - $17 = $109
The goal is for AMD to stay under $164 from now until January 21. If AMD rallies up towards $165, we will buy 100 shares at $164 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.
Enjoy the start of the new year! 🥂
Steve and the Call to Leap Team
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