Adjusting AAPL and AMD positions

Last week was a very strange moving week, with the two day rally in the beginning of the week and then the crash-like drop on Friday. 

$AMD

Negative news for AMD with a decreased demand and a warning for earnings, made the stock drop to 58 after being up to 70 the day before.

My position in AMD at the start of the week was a strangle on with 65 put and 80 call with a received credit of $4.09. With the stock price dropping to $58 on Friday, I had to adjust my position to limit the risk for a further drop (certainly with a negative Q4 earnings call coming in the week of October 24th). 

I rolled the call down to 65 for a $3.57 credit, bringing the total credit received $7.66 and with breakevens at $57.38 and $72.66

With a lot of negative news already in the price I don’t want to ‘overroll’ my call down too fast either. So my plan is to keep it at this 65 strangle, anticipating on a move back up or rolling out this position in time, giving it more time to climb back up.

$AAPL

AAPL has been suffering too of negative news with the lower than expected interest for the new Iphone. This news has pushed AAPL lower the las two weeks. 

I have two strangle positions on: a strangle 145P-160C, exp 18/11 for $9.31 credit and a strangle 130P-170C, exp 18/11 for a $4.11 credit.

With AAPL dropping this week to around $141 this week, I decided to roll down the call on the second position down to 160, adding more premium with an extra $0.85 credit (IVR at 84!). 

Even if there is a bounce back up, I believe 160 is a safe range.

Total credit received is now at $4.96 on this position, giving breakevens at $126.04 and $164.96

I am not adjusting the first strangle yet because the share price is well in between my breakevens and I don’t want to over-adjust either.

Next week will be exciting without any doubt.

Cheers