Yo, Pit Crazies,

I remember when Research in Motion started a long slow decline to zero.

Everyone used a Blackberry phone and then they didn’t. 

I am not going to say that will happen to Advanced Micro Devices (Ticker: AMD), but something is up with the stock.

One-year chart of AMD and a drop from $160 to $58

Is it time to buy, sell or hold?

Not A Time to Buy, In My Opinion

AMD is going through the painful reality of multiple compression.

I have been in the markets since 1989 and I never saw a semiconductor company maintain a 20+ earning multiple for more than a year or two.  

The business is too cyclical and the business cycle catches up with them eventually.

I’m thinking Q4 will be a candy store time to buy names like AMD, Nvidia Inc (Ticker: NVDA), and Qualcomm Inc. (Ticker: QCOM), etc. as the list goes on.

I think most big tech names will get back to their pre-Covid areas, with a few exceptions.

My number for AMD is around $50, so 1×2 puts spread selling puts at the 50 strike and buying puts closer to $60 would make a lot of sense.

I started my Div+ Program in OP Mentoring because I wanted to add a strategy to take advantage of dividend paying stocks the market did not like.

That strategy has performed well since June – with top-end gains of 143%! – as stocks went nowhere.

More to come on that this week.

The Rundown

OP Mentoring

I closed an Apple Inc (Ticker: AAPL) call calendar and put for a 9% gain. I used the market neutral strategy that I teach in OP mentoring.

Pro Chat Room

The Pro Room was busy Friday.

To Your Trading Success,

AG