We’re using our “Parachute Protection Plan” to close both our AMD and MU put positions.
Computer chip stocks have been trading lower as investors worry about slowing demand. While these stocks are now trading low enough to offer deep value, the fear on Wall Street continues to push them lower.
Both AMD and MU are below the strike price (or agreement price) for our put contracts. And both could continue to trade lower if investor fear spreads.
So while I still like these stocks as long-term investments, we’ll exit our positions for now.
We will, however, keep both on our watch list for when market dynamics shift.
By closing these positions, we’re managing our risk and freeing up capital for new income positions with wider built-in safety buffers.
- Buy (to close) our AMD August 19th $80 Put
- Limit $10.00 or less
- 15:30 Adjustment
- Changing our limit price to $10.30 or less
- 15:36 Executed
- Bot AMD August 19t $80 Put @ $10.05
- Buy (to close) our MU July 15th $70 Put
- Limit $16.60 or less
- 15:24 Executed
- Bot MU July 15th $70 Puts @ $16.56