Unusual Options Activity: Advanced Micro Devices (AMD)

Advanced Micro Devices (AMD)
Traders bet on drop this week.
$50.50 put options expiring on Friday, January 24th, on
Advanced Micro Devices (AMD) saw a 43-fold rise in volume, going from 102 open contracts to over 4,350 trade hands.

The bet is that shares will fall about 1 percent from their price near $50.95 in the next four trading days.

  • Special: 32,481% Growth: The SmartPhone Startup Outpacing Apple and Samsung
  • The option buyer paid $0.73 on average per contract, so shares would need to decline under $49.75 for the buyer to profit at expiration.

    Shares of Advanced Micro Devices have had a stellar year with a 151 percent gain. That gain shows little sign of a slowdown after the company recently unveiled its latest line of computer chips.
    Action to take: The sizeable trade may or may not play out—with so few days remaining and with the trade close to being at-the-money, it could go either way. We prefer options trades that have a higher win probability—and one that have a bigger potential percentage gain when they do win.

    • Bill O'Reilly Interviews Wall Street Expert to Help YOU Achieve the American Dream

      "We're going to bring back the American Dream... bigger, better, bolder, richer, safer, and stronger than ever before." - President Donald Trump

      During Trump's first term, 8 million Americans became millionaires despite constant resistance from Democrats and even some Republicans in his cabinet.

      Now, with Republicans controlling both houses and the Fed cutting rates, everything is aligned for even greater growth.

      Bill O'Reilly interviews investment expert Alexander Green who reveals details on 6 stocks with the potential to soar under Trump's pro-business policies.

      Get the Details Right Here

    We’re still bullish on shares over the long term as we have been in the past, so a January 2021 $60 call looks like a more interesting trade for the likelihood of profits as well as the potential return there. A 20 percent return in shares in 2020 is reasonable, even after the company’s rally last year.

    Investors looking to buy have missed out on a great rally already, but should use any weakness under $50 as a reason to pick up shares.

  • Special: The Crypto that Could Replace Visa?
  • [wp-post-author image-layout="round"]