Rolling My AMD Call Lower — Patience Meets Opportunity

Rolling is becoming one of the most relevant strategies in this market, and I expect we're going to have even more opportunities in the days ahead. Today I want to show you a live roll on AMD.

Here's the setup: AMD has resistance at $270, support at the $191–$192 area, and the 200 moving average is lining up right with that key support level. We don't have a perfect -2 mean reversion rating — I'd love to have all three signals firing — but with support and the 200 MA converging at the same price, this is close enough, good enough for me.

So I'm rolling my call down. But there's a rule I never break, and it's the difference between a smart roll and an expensive mistake.

Here's the trade: