Repositioned AMD Bullish Calls

Eman posted on 05/18/17 at 09:43 AM

So, 12.50 and 13 strikes got pummeled, but still had time value. On money, I'm actually slightly up after my gain in 3 calls from the earlier June 23 expiration trade. The 5 calls at 12.50 and the 1 call at 13 lost big so I cashed in the remaining value and repositioned for: AMD: 11.50 strike for June 30 expiration with 3 calls at 0.72 This trade now has promise rather than holding only time value on the 12.50 and 13 levels. Keep in mind though, that until we get above 11.50, these new calls only have time value as well, but have a better chance than at the other levels: Let's examine the Delta Differences: 13 : 23 Delta 12.50: 29 Delta 11.50: 49 Delta (A big difference versus the others) Gamma can also tell you how Delta can change: 17.23 is what Gamma shows on 11.50 strike given about 49 Delta; so Delta could change to 66+ I am happy with this decision but disappointed in the news and markets. As an Options trader I remain nimble to do what I think is best given the circumstances. I think this trade can be profitable as we are in the low 11's now in recovery mode versus sell-off from yesterday.

Edited by Eman at 05/18/17 at 09:52 AM

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Posted by Eman on 05/18/17 at 09:43 AM

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