Trade
Buy/write AMD, buy the stock, sell the Apr 40 call
My entry is not so great, and the stock is drifting lower. Support at 41, and then 39.
Some people just don't get covered calls. They often ask why a person needs to hedge, when they can just be right, trade and make money. Well, sometimes a person is wrong, as I am just now with AMD down from where I bought it. With covered calls a person can be wrong and still make money. The AMD position is set up for about a 5% gain over the next 50 days, with about 5% downside protection. If the stock is up, flat or even a little bit lower, the position is a winner. What I give up is explosive upside. However, 5% over 50 days, over and over again, makes for a nice year, and I don't even have to be right.
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