Traders Turn Negative on AMD
Chipmaker and perennial underdog to Intel, Advanced Micro Devices (NASDAQ: AMD), is selling off this morning, currently trading $8.82, down a little over 1.00%. The stock has reached a critical chart level, which is a 50-62.5% retracement of the December to February sell off; if the stock cannot move higher from this level, the outlook for the stock is very grim with the possibility of a move down to $7 or lower.
Puts are being purchased in Advanced Micro Devices this morning as well. The March $9 puts were purchased on the offer 5,000 times a short while ago (Volume has since risen to over 7,000 contracts), in addition to the April $9 puts being purchased over 2,300 times .
A few insiders have been selling shares over the past two months as well; not a good sign. I am negative on the name.
