Bullish on AMD due to undervaluation relative to Nvidia and strong management; executed via Jan 5th $200 calls expiring Sept 9th for ~$29.9k profit.
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Actually, I can show you an example where I think I'm missing something. So, I'll go to AMD. For example, AMD, look, I think the next strategy that we're going to cover is leaps and here's a leap option that I'm going to discuss.
But, I'll show you why you're going to feel FOMO when you have a stock like AMD that goes up a lot in a wheel strategy. For example, if the stock goes in-the- money on a covered call, like AMD, I have a 200 call here and obviously the stock goes up above 500.
You're going to feel FOMO. This is an extreme example of FOMO.
First, let's start with AMD, which we hinted at in the last part of this course. AMD here, $200 call option. This is something that I bought in January. I bought it as part of my challenge.
And one of my best bullish moves was on AMD. I thought AMD was a gold play or a great opportunity. I thought it was golden because everyone was buying Nvidia at the time. (Nvidia).
Everyone wanted to be in the S&P 1. S&P 1 is the world's largest company, Nvidia, which I don't blame anymore. Nvidia is the main driver of AI infrastructure. However, AMD and Nvidia are very closely related.
They are dependent on each other, yet AMD was struggling. When Nvidia was going up, AMD was going down. It did n't make sense to me. I also thought AMD's management was very good.
I believed they would execute their plan properly . So, in the end, I bought a call option here . And I spent it, if you look at the history , on January 5th. I bought it for $200 , which expired on September 9th.
I bought it for a little less time than the LEAP , because the LEAP is a one- year call option. It was a nine- month call option.
First, I want to discuss a real situation here, because I've made about $29,900 in profit from my position in AMD so far.
What this channel has said about $AMD
Invest with Henry has 3 calls on this stock; only the adjacent ones are shown.