Replies to post #94145 on Advanced Micro Devices Inc (AMD)

[puffadder]

Consolidating - trend is north

[JLS]

Already seen significant move up.

Can't do that forever without some change in AMD's financial situation.

Think about it and be thankful the stock isn't dropping.



What I do in situations like this is buy the stock then sell weekly Calls against the shares. Implied Volatility is high now so you can make good income by doing that. In fact it's relatively easy to trade in and out of those Calls two to three times per week to increase your weekly income.

If your shares are not assigned, do that again during the following week.

If your shares are assigned, then hold your cash and sell Puts on MU at a lower strike. If you are then Put the shares at expiration, then go back to selling Calls again. If you are not Put the shares then sell Puts again for the following week. And, as with the Calls, you can trade in and out of those Puts two or more times during the week.

If you don't want to sell Puts when you don't own the stock (because you are afraid you'll be Put the shares at a strike that is too high above current trade) then wait till the stock drops to a price you like then purchase the shares again yourself and go back to selling Calls.