Breaking Down My 42¢ AMD Trade

Earlier this week I closed out my 5th and 6th wins in a row with a new strategy I’ve been using since September.

In total, in just 2½ months, we’ve closed 17 winners out of 20 trades.

So, of course this week when this strategy triggered another opportunity, I jumped right on it.

Overview

This week’s trade triggered on Tuesday when I my system spotted bullish flood orders on AMD.

I’ve had my eye on AMD lately because:

  • AMD is one of the tech stocks that is matching the broad market
  • plus, it’s currently breaking out to new highs for the year
  • and is currently in a confirmed bullish trend

All these forces gave me great confidence that AMD could give us our 7th consecutive win.

Trade Details Unpacked

As with some of the other trades I’ve shared with you this week, this trade is based on following the big money

Then seeing where that flood of money is likely to send the stock price.

And then selling a promise to take the opposite position.

So I simply sold a promise to buy AMD at a set price if it went down.

This strategy lets me collect a handsome premium while being reasonably sure I won’t have to fulfill the promise.

Because this trade is currently active, out of fairness to my paying members, I can’t share the details of the exact strike price.

But I can tell you that the bullish flood, plus the other forces I talked about above were pulling AMD’s stock price upward.

How’s It Working Out?

And the trade expires next Friday the 22nd… and AMD has gone nowhere but up since we entered the trade.

So time is running out for the options buyer.

Meanwhile, every day that ticks down is one day closer I get to keeping the money without having to make good on the promise.

If history is any guide, the trade will expire worthless — And we’ll keep the full 42¢ credit we collected.

Wait, what?! Only 42¢?

So yes, when I tell folks about these trades, sometimes they cringe when I mention the credit I collect.

This one brought me just 42¢!

How is anyone supposed to make any money? Well, here’s how the math breaks down:

I collected 42¢ per share. And because each option contract controls 100 shares, that means 42¢ x 100 = $42.

Ok, so one option contract brings in $42.

That’s better, but still not a ton of money. What’s next?

Just scale it up. If you want to collect $420, just trade 10 contracts. ($42 x 10 = $420)

Or if you want to collect $4200, you trade 100 contracts.

You get the idea.

Stay tuned for more updates…

Trade well,

Jack Carter

P.S. If you want to join me in my next trade using this strategy, click here to watch the video. You can go through the member materials and I hope to see you join me soon.

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