I closed out my AMAT exposure at the end of Monday’s trading day, prior to earnings release Tuesday after close.
Originally, I sold May 20 naked puts (ANQQD) on AMAT when it was at 21. Less than two weeks later AMAT was down to 18.90 and I sold May 20 naked calls (ANQED) on it. Today AMAT inched up all day and was around 19.80 when I decided to cut my risk and get out while I could. I ended up making an $8.02 profit. I’m not sure which direction AMAT will move after earnings are released. If it flattened out around 20 I’d have been sitting pretty, but I decided the risk was too great that it would shoot farther than my premiums would cover. Depending how earnings go tomorrow, I might get right back in on Wednesday morning when the risk has been reduced.
Here’s how my trades broke down:
Date/Time Description Amount
04/03/2008 13:13:12 Sold 4 ANQQD @ 0.8 $307.00
04/14/2008 09:37:32 Sold 4 ANQED @ 0.55 $207.00
05/12/2008 15:49:54 Bought 4 ANQED @ 0.45 $(192.99)
05/12/2008 15:50:49 Bought 4 ANQQD @ 0.75 $(312.99)
Profit $8.02