Selling AMAT call options and SLB naked puts
I’m short four AMAT naked puts and it’s been falling since soon after I got in. This morning, shortly after opening, while AMAT was trading at 18.90 I sold four uncovered May 20 calls (ANQED) and received $207.00 after commissions.
I like AMAT long term, so I opted not to buy my naked puts back, but don’t see it above 20 before expiration, so I sold the calls at the same strike. I’ll profit on at least one of the options and hopefully enough to cover the loss on the other. If AMAT does climb again, 21-22 might be a hard ceiling to pass. The short-term downside looks more likely though since it spent last week crossing back and forth over the 50 day moving average and then finally fell through hard where it opened today. The 20 moving average has been a tough ceiling too and it’s declining now. I’ll try […]
Original post by Alex Fotopoulos