AMD Bulls Add to Options Positions, Undeterred by Stock Slump: Options Chatter
There's no shortage of $Advanced Micro Devices (AMD.US)$ bulls in the options market and they keep adding to positions, undeterred by the stock's 26% slump over the past year.
At 9:50:11 a.m. in New York, an active seller was paid $2.25 million in premium for writing out of the money put options that give the holder the right to sell 1.21 million AMD shares at $95 by Aug. 15. That bullish transaction would be profitable for the seller should the stock continue to trade above that strike price, allowing the contract to expire worthless.
The bullish trade was posted a day after AMD’s event that highlighted its computing and artificial intelligence products.
“When you combine all that performance with lower CapEx, what we're seeing is MI355 can deliver up to 40% more tokens per dollar than competing solutions. 40% more tokens per dollar, AMD CEO Lisa Su said during the event Thursday. “That means higher throughput, greater efficiency, much better TCO for cloud and enterprise, and it really makes MI355 the best choice in the industry for inference at scale.”
Still, AMD shares fell 2.2% that day, and continued their decline Friday, deepening their slump over the past year to more than 26%.
“AMD is executing well toward its target financial model, but we remain Neutral as shares appear to be nearly fully valued,” JPMorgan analysts including Harlan Sur, wrote in a note Friday.
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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73810367 : Could AMD reach $200
ZhoolyeyMooch : its not a ? of can but when ? AMD will grab that market share. It’s the nature of the beast & competition. The no 1 is never guaranteed by one stock only.
bill100 73810367 : Cannot.
104254860 bill100 : Yes, any stock that has the endurance to last can reach over $200 by 2024.
HyperionZ : NVIDIA has a $3T+ Market Cap, why would AMD take a lead lol