Stock price change for AMD and INTC after their ER day!
So it might be ok to wait for INTC's earning on Tue. before enter strangle position for AMD.
The ideal play here would AMD May 14 Call/13 Put. If AMD doesn't move a lot as expected after ER, close the position imediately. If it moves huge on one direction, we either take profits for the comb or just do for the up side and wait for a dead cat bounce for the down side, but be careful!
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Wed. morning bot 14Put @0.86, while stock traded at 13.4, then the whole day, AMD traded up, later bot anther 4 14Put at 0.7. Thur. AMD traded higher again, near close bot 8 15PUT @0.49 while AMD traded around 14.2.
This is a very bad practice though I had a very good plan laid out before hand for 14call/13put strangle.
Lesson: how to buy a straddle or strangle.
1. buy put and call at the same time, which always the simplest way to buy strangle.
2.when stock in an uptrend, buy call, downtrend buy put, then wait for stock to reverse to buy the other half of put or call. The is method requires a lot of focus and tactics, otherwise you might end up buying more expensive call and puts as I did for AMD!
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