Advanced Micro Devices Inc (AMD)

[HailMary]

I see your strategy as bearish.

I was referring to taking the put assignment instead of rolling, and then waiting for it to go up enough so that I can write calls to get rid of these extra shares I should not have (I have too many already). This would be the best path if I was short term bullish.

But instead, I have to say a put roll is enticing me right now because it is less risky. If I take assignment, my entry price would be $16.25. If I instead roll, I could end up with one of the following entry prices:

Jan 14 - $15.10
Jan 15 - $15.55
Jan 16 - $15.85
Jan 17.5 - $16.10

Note that I have to write 16s and up to have more cash in my pocket than I started with ($.15 for the 16s, and $1.40 for the 17.5s). I think I would be willing to take the small loss in cash at this point for a lower entry price. I'm going to probably do the Jan 15 roll. I would end up being out $.55 per share in cash. This is considered a wash sale (the Jan 15s are in the money), so the loss I take today doesn't apply until I close the Jan contracts.

Just thinking out loud. Perhaps others will benefit from seeing how a put roll can lower your entry price.