🔒 Premium Membership Positions

Hi Advanced Traders!

Since AMD is still trading between the downward trending support and resistance lines, we can set up some more bear call spreads. If you had some placed a couple of weeks ago and are already 50-80% profitable, you can consider closing your positions to restart new ones.

AMD BCS:

Expiration Date: June 17, 2022

Step 1: Buy 1 $150 strike call option (delta 0.02) for $14.

Step 2: Sell 1 $120 strike call option (delta 0.13) for $107.

Step 3: Set up a buy-stop order of 100 shares for $119 per share.

Credit: $107 - $14 = $93

The goal is to have AMD stay below $120 from now until June 17. If it does, both legs will expire worthless and you will be able to keep $93.

If AMD rallies up to $120, you will buy 100 shares for $119 each, convert your bear call spread into a covered call, and sell your first leg.

Remember that you don't necessarily have to wait until expiration. You can always lock in your profits if your contracts shrink 50-80% in value.

Also be mindful of how many bear call spreads you open. I know many of you have been profitable with this trade over the past several months. However, I recommend that you have capital to cover yourselves in case AMD starts to rise again.

Like always, you can use these numbers as a guide and feel free to tweak the numbers to your own preference and risk-tolerance.

Happy trading!😀

Steve and the Call to Leap Team

The following article is strictly the opinion of the author and is to not be considered financial/investment advice. Call to Leap LLC and the author of this article does not claim to be a registered financial advisor (RIA) or financial advisor. Please visit our terms of service and privacy policy before reading this article.