Well, it’s been a minute. It feels good to be back to the blog. At the onset of the global pandemic, my wife, Tracy, was no longer able to teach her in-person whole-food plant-based cooking classes (for disease prevention and survival). Together we decided to launch a business selling her nutritious and delicious foods. I switched Options Hotline to a monthly publication to give me more time to help get the food business going.
We are so grateful for the tremendous response to Tracy’s Real Foods. Check us out at tracysrealfoods.com. We’re growing locally around San Diego and ship nationwide. Let me know what you think.
Now, back to options. The greatest options gains are made when your options quickly move from “out-of-the-money” to “in-the-money.” That is just what happened with our September 1st recommendation on AMD (Advanced Micro Devices).
The late-August push higher created glaring negative technical divergences between price and my indicators (new highs for price, but not the indicators shows price may not be as strong as it appears). Leading technology stocks looked ready to correct. My recommended AMD October $90 put for $7.00 or less was triggered on the September 2nd opening at $6.70.
As you can see on my daily candlestick chart above, AMD posted consecutive negative black lines and broke the positive influence of the short-term moving average. Friday saw a rebound right to that line posting an indecisive candle. Former support often represents new resistance. We shall see.
Friday’s intraday decline helped our recommended put option achieve our stated $15.00 price objective. The AMD October $90 put traded as high as $16.75, +150% in 2 days, with an always known and strictly limited risk! That is what I call Superleverage.
Started by my father in October of 1989, Options Hotline is approaching its 32nd year of publication. I can’t guarantee all my recos will be like AMD, but I do promise to continue to do my best to find options winners for my great subscribers.
Subscribe today to see what we come up with for October.