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With AMD's stock declining from poor Q4 guidance, do you think INTC will do better?
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AMD Sees Bearish Unusual Option Trade Ahead of Earnings Report

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Luzi Ann Santos joined discussion · Oct 28 11:23
$Advanced Micro Devices (AMD.US)$ saw a bearish $1.51 million trade in the call options just a day before the chipmaker is expected to report earnings that could test whether the stock is living up to the hype over artificial intelligence
Just seconds after the market opened Monday, an active seller sold call options giving the holders the right to buy 299,000 AMD shares at $160 each by the end of the week, according to exchange data tracked by moomoo.
AMD Sees Bearish Unusual Option Trade Ahead of Earnings Report
(To see the unusual options trades, click here. For AMD's options chain, click here.)
The bearish unusual trade was posted at a time when analysts, on average, were expecting AMD to report a 375% jump in adjusted earnings to 92 cents a share for the third quarter that ended Sept. 30, according to estimates compiled by Bloomberg.
The surge in earnings is anchored on expectations that data center revenue could more than double to $3.46 billion. Revenue is seen climbing to a record $6.7 billion, buoyed by the company's fast-growing AI business.
Source: moomoo desktop app
Source: moomoo desktop app
AMD's stock has climbed 65% over the past year, tracking the advance in the $PHLX Semiconductor Index (.SOX.US)$ amid investor excitement over the potential for artificial intelligence and the advanced semiconductors required to power them. Still, those gains trailed the 241% jump in the shares of rival and market leader $NVIDIA (NVDA.US)$ over the same period.
The strength of AMD's MI300 series, which are accelerators meant to handle AI and high-performance computing (HPC), and its high-performance server processor EPYC is expected to make up for the cyclical weakness in gaming and embedded segments, Bloomberg Intelligence analysts said in a note on Thursday.
Piper Piper Sandler's Harsh Kumar sees AMD's revenue from MI300 and MI325 "comfortably" exceeding $5 billion this year and could climb to $10.2 billion by next year.  
Source: moomoo desktop ap
Source: moomoo desktop ap
Investors are looking for clues on how AMD's new AI processors are performing compared with Nvidia's, Bloomberg quoted a TD Cowen analyst as saying.
While the biggest unusual trades so far were bearish, there's no shortage of AMD bulls. The price of the $160 call options is now up 19% at $5.40 per share, higher than the $5.05 paid for the bearish trade posted earlier.  About 18,530 of those call options were traded so far, exceeding the open interest of 17,270. That makes those call options the most active contracts tied to the chipmaker. The second most traded options were the $170 calls.
The divide between the bulls and bears can be gleaned from AMD options open interest. The tally of outstanding contracts for put options that give holders the right to sell AMD shares at $130 each reached 101,850 across 22 expiration dates that stretch through Jan. 15, 2027.
Source: moomoo mobile app
Source: moomoo mobile app
(To see the US options market page, click here. For the options ranking, click here.)
On the bulls' side, the biggest open interest is in call options that give the holders the right to buy the stock at $200, with the total at 100,050.
So which side do you think will triump? Share your thoughts in the comments section. And if you have a price forecast for AMD, please vote below.



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