Could Have Been a $1,000 Day AMD options

 

Trade Recap

 

I discuss my trades on Friday, October 7, 2022. The day was short, and I only took one trade. I discuss how the market sold off when the Unemployment Information came out, leading to a downward trend for the entire day. I only took one trade on AMD, as it approached a level that it had dipped to the day before.

I explain that AMD had recovered slightly in the pre-market after dipping in the after-hours session the day before. I was waiting for the stock to push up a little more at the open, but it never reclaimed its opening price. I took one contract as a feeler to see if it would push lower, and when it failed to go higher, I added four more contracts. I held the contracts until they broke through the low of the day.

I note that holding zero DTE options for any length of time is not ideal as the premium will be eaten away. Therefore, I sold all five contracts for 91 cents in about three and a half minutes. I mention that the stock bottoms out around the level it dipped to in the after-hours session. If I had held it there for that amount of time, the premium would have been eaten away. I was not interested in that scenario.

In summary, I only took one trade on AMD on Friday, October 7, 2022. I took one contract as a feeler and added four more contracts when it failed to push higher. I held the contracts until they broke through the low of the day and sold all five contracts for 91 cents in about three and a half minutes. I explain that holding zero DTE options for any length of time is not ideal as the premium will be eaten away. Therefore, I was not interested in holding the contracts at the bottom level for an extended period.

 

Would you have made these same trades?

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