so depending upon your time horizon and I think this will be a first quarter not necessarily year end rally particularly with AMD because as I said rallies will be sold into because of tax loss selling and I still believe there's institutions that are shorting the stock. but I believe that you're seeing a changing of the guard and a turning of the corner back into chip stocks as a whole and you can look at soxl and see it's recovering. I think a realistic three-month Target on AMD would put it about $145 to 146 from current levels. and this is assuming there's zero negative news that means they're quarter when they release it is good it doesn't have to be spectacular it just needs to be good
10baggerbamm OP : as a follow-up my suggestion if you can stomach the extra level of risk. would be utilizing the 2x leveraged ETF AMDL.
if you understand selling puts and what that means because I'm not going to get into it you can sell a January strike $7 put right now and collect a nice premium for less than 30 days. additionally you can sell closer to the money an 8 dollar strike put. this does subject you to downside risk no different than if you were on AMD common stock you are getting paid quite a bit of premium as a matter of percent for one month and in the event the third Friday which I believe is a 17th that these expire they'll leverage ETF is below $8 you get put the ETF but you received a huge premium for your time. and your cost basis would be significantly lower.
I made quite a bit of money in AMD earlier this year with this strategy of selling puts getting put the stock immediately going out and selling calls against my position for the next month and witnessed the 2x leverage ETF rally from 10 to just under $17. I don't feel the rally in the first quarter will be this robust I do believe that in the 2x ETF we could see $11. I have not yet decided personally if I'm going to be selling puts on AMD and that's because I have an enormous position in Nvidia that I was put couple of weeks ago at higher prices and I also have a very large position in soxl. so you might say have a concentrated position between two leveraged ETFs in the chip arena.
I have a lot of options that are expiring knock on wood Friday at 4:00 p.m. so there's a very good chance that next Monday or maybe Friday just before the close I open positions in amdl January by selling puts both the $8 and $7 strike