matt0311 6:54 am on Friday, May 18, 2018
Tags: pietrade ( 143 )

#pietrade Guess my first attempt…

#pietrade Guess my first attempt with AMAT is off to a bad start… Am getting ready to sell calls

Jeff 6:55 am on Friday, May 18, 2018

Not bad! Just part of the process. I’m short the 54.5 put expiring today.
- matt0311 6:57 am on Friday, May 18, 2018
  
  i have 54 puts to expire today. Part of the learning process: start a new position AFTER the earnings release.
  - Jeff 6:57 am on Friday, May 18, 2018
    
    Yes, in all honesty, I would not have sold the put if I’d performed my usual diligence and checked the earnings date.
    - matt0311 6:58 am on Friday, May 18, 2018
      
      Same here, onwards and upwards right?
    - thomberg1201 7:07 am on Friday, May 18, 2018
      
      I missed the earnings as well and I have been trading it a little. It dropped lower last month and came back.
      - thekidd76 8:03 am on Friday, May 18, 2018
        
        Jeff, is your plan to take assignment and start selling calls, or roll this?
        
        Jeff 8:56 am on Friday, May 18, 2018
        
        #PieTrade — taking assignment
- hcgdavis 9:36 am on Friday, May 18, 2018
  
  Yeah the goal is to just keep bringing in premium no matter what happens with the stock. Now if the story with the stock changes then we get out. But even though this is an 8.5% decline, it is still in the range of working it back to even or profit within a few weeks.
  
  Will post my trades as I CC it back to even or profit.
hcgdavis 9:16 am on Friday, May 18, 2018

Yes, not the reaction I expected to earnings but good premiums and should be able to work it back to even or profit in about 4 weeks based on premiums.

I will be taking assignments at 50.80 and 54.02 cost basis. Start selling calls on Monday. Personally I would not go right ATM, maybe 1-2 strikes out as it tends to rebound quickly.

It’s latest range has been 45-55 so we should be able to stay there and make back premium.
hcgdavis 9:27 am on Friday, May 18, 2018

I have been doing these nonstop for about a year now. Typically one out of 4 positions will dramatically move against you. However as long as the premiums are there, you can usually roll it back to even within 4-6 weeks.
Even a 17 point drop in SWKS last fall, only took 12 weeks to make a profit on it.
I expect the same with AMAT.
The ticker I have taken out of the rotation is GM, it moves around too much for the premiums we are collecting.
Good luck and if you have any questions let me know.