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Technology Stocks : AMD, ARMH, INTC, NVDA -- Ignore unavailable to you. Want to Upgrade?


To: Joe NYC who wrote (71353)10/10/2025 4:27:36 PM
From: ElroyRead Replies (2) | Respond to of 72317
 
The spreads (between bid and ask) make rolling out deep in the money options a little more challenging, but still doable...

I happened to buy AMD at $168 last Friday, and same day sold a one week (today) $170 AMD call. I was trying to make $5 in one week. Then the news came out and AMD went to $232 (!!).

I was trying to figure out what to do with the short $170 today expiring AMD call.

I wound up rolling it forward 3 weeks to Oct 31, still a $170 calls, for $1.53 premium. Not much, but it's about a 15% yield in I could do the same thing every three weeks.
I did it when AMD was $220, if I had waited I might have been able to get a small bit more.

Another option was to roll it into Jan AMD $180 short calls, for about no premium. I thought that's too long, and maybe by then the whole OpenAI deal has collapsed (or China has taken the market down). When doing rolls, I like to keep them as short as possible while still making enough to make them worthwhile. This $1.53 for three weeks was barely worthwhile.
I'm probably going to keep rolling this call into something unless AMD stock makes the annual yield on the roll less than 10%.