Advanced Micro Devices Inc (AMD)

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Unless you think the market or a single stock is likely to rocket or tank, the procedure for calls and puts is about the same as the procedure for the underlying stock.

Buy calls and sell puts when the market is tanking and news is bad.

Sell calls and buy puts when the market is rising and news is good.

It's nice to hear the folks talk about covered calls as being covered by stock but they can also be covered by money or other calls. Same with puts.

Offer to sell at a price, not at the market. Let the market come to you, don't go to it.

Options only have to be out of the money one day to expire worthless.

'In the moneys' are normally the better buy unless you have real reason to *speculate* that you have knowledge the market doesn't about the direction of the stock price.

'Out of the moneys' are normally the better sell, but watch out for the bid-asked spread, don't give them away, and don't expect any gifts.

The MM is there to make money and *ALWAYS* has priority over you. At my institution the individual has to bid to buy or sell at a fixed amount over the current market for buys or under for sells. I've chased MMs down to $0.15 difference, put in bids to both sell and buy and had only one contract(on a bid of 10). That left the 'spread' at $0.05 and no bids could be placed except 'at the market'.

While most ( some say 80% ) of all options expire 'out of the money', there are quite frequently trading opportunities within the expiration period that are worth using.

The INTC Aug 22.50 puts @ $0.40 )look like a decent sell. $1.50 to cover with 2% premium and a nice price, $22.10 to buy ( $22.50 - $0.40 ) should things go wrong.

Good luck. you'll need it.