Lockdown Stocks - AMD

I always liked Intel and AMD as they pretty much run a duopoly on processing power. Yes there are some key differences, intel produces its own chips vs. AMD using pre-manufactured ones etc. However pretty much any computer and mobile device uses either manufacturer. Coupled with a world is digitalizing at a staggering rate, chip producers are likely to have sustainable business long into the future. The recent launch of the new GPU series also looks promising and could challenge NVIDIAs 30xx series.

From a valuation perspective I like the company as it shows solid fundamentals and good management which justify above average ratios.. I remain thus comfortable to hold a long term position.
Recent volatility ahead of US Elections has put pressure on stocks in general and might has provided some attractive entry levels via options.

I am looking to pick up some shares around the $80 level which has proven as a strong support since the March 2020 selloff.

Indicators

• Triangle is forming, waiting for breakout
  
• Gap above 50 EMA on Nov-4, with subsequent gap up on Nov-5
  
• Soft support around $82
  
• Positive MACD crossover
  
• Analyst target $87.02 = next resistance level, before all-time high at $94
  

Trade
Looking to sell the $80 put and buy a call around $87

การซื้อขายยังคงดำเนินอยู่:

Positon Opened;
Risk Reversal at net positive premium
Short 77.5 Mar21 Put & Long 90 Mar21 Call

ปิดการเทรด ด้วยตนเอง:

Closed my short put position to limit risk on the downside.

I will maintain the long 90 MAR 21 call for now.

ความคิดเห็น:

Long Call still active and ATM for the time being.

$90 seems proven support after recent gap higher. Question will be whether there is more room to the upside...

Will do a deepdive pre-earnings to avoid unwanted surprises