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Stock / Symbol: Advanced Micro Devices / AMD
Strategy: Put
Trade entry date / price: 31 Jul 2020 / $76.96
Price at this post: $76.88
Update / Reasoning: For a few days there, a put on AMD was looking like a really bad idea. However, AMD is now actually trading bit lower than it was when we entered the trade. The premise was to play a pullback to the 17 day average, which was around $62 at the time of the trade. Now, a pullback to the 17 day would result in a price of around $74. So, we're going to adjust our mindset and just try to pull off a win by capitalizing on another day or two of rapid downside movement.
Trade Exit Details:
STC 1 AMD 21Aug20 62 put
For a min net credit of $0.90 per contract (GTC order, limit order). The mid is currently at a credit of $0.26, so, this may take a few days or more to fill.
Analysis:
Max Risk: $35 / Realized Risk: $29
Max Reward: unlimited with AMD under $61.50 by Aug 21st
Profit Range: AMD under $61.50 by Aug 21st
Estimated Commission (round trip): $3
