Selling AMD puts for income.
Advanced Micro Devices (OXY) is a consumer chip stock with reliable profits.
The stock has pulled back sharply as the stocks entered a bear market. But AMD is nearing a key support level and the stock now trades at a very reasonable valuation.
Thanks to rising volatility in the market, we’re able to collect a lucrative income payment, while keeping our risk relatively low.
By selling the July $75 puts near $2.70, we’re able to collect an annualized yield near 45%, while also giving us roughly $8.25 per share in cushion between the current market price for AMD and our strike price.
- Sell (to open) 1 AMD July 15th $75 put
- Limit: $2.70 or more
- The new position will represent roughly 8.2% of our model.
- 11:24 Executed
- Sold 1 AMD July 15th $75 Put @ $2.75