Covered Call Trade Initiated with Advanced Micro Devices (AMD)

by | Apr 13, 2021 | Covered Calls

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Today, I opened a fairly short duration ITM covered call trade by buying shares of AMD and then selling Apr-23 $77.00 calls for $3.60. This trade has a roughly 76% probability of generating an annualized return of 38%.

If you look at the Earnings Date in the table below you will understand why I selected the April 23 rather than the April 30 expiry date. As a trader, I will almost always want to be out of a trade when the quarterly earnings report is released thus avoiding the possibility of a negative market reaction should the earnings disappoint.

AMD Covered Call

AMD Price Chart