Market Overview

A Look At AMD's Options Activity, Short Interest

A Look At AMD's Options Activity, Short Interest
Related AMD
Tech Sector Earnings: Revenue Growth Widely Expected To Slow, Will Global Uncertainty Weigh?
Benzinga's Bulls & Bears Of The Week: Delta Air, McDonald's, Netflix, Nokia, Tesla And More
AMD to Report Fiscal Fourth Quarter and Full Year —…–8 Financial Results (GuruFocus)

Advanced Micro Device, Inc. (NASDAQ: AMD) stock is up about 3.5 percent Wednesday on a weak day for the market. Here’s a brief overview of the factors in play.

Option Alerts

The trading action in AMD started Tuesday when Benzinga Pro’s Signals feed sent out 32 options alerts on AMD throughout the day, most of them related to large bearish option trades. The stock finished Tuesday’s session down 1.2 percent and started out Wednesday’s session with relatively little volatility.

Around 10:30 a.m. Wednesday, however, AMD jumped more than 5 percent as traders circulated a rumor of a potential buyout. There appears to be no substantiated evidence of any M&A negotiations or any other fundamental company news driving the big move.

Technical trading may also be playing a role in AMD’s strange trading activity. The stock’s 50-day simple moving average is sitting at $11.98, and the 200-day simple moving average is at $12.28, making the $12 level a potentially important line in the sand for both bulls and bears.

Short Interest

A wildcard in the AMD mix is the stock’s large outstanding short interest. According to financial analytics firm S3 Partners, AMD short interest stands at $1.96 billion, the fifth most in the global semiconductor industry. Analyst Ihor Dusaniwsky says 2018 is off to a rough start for semiconductor shorts, and AMD has been particularly harsh. Dusaniwsky estimates AMD short sellers are already down $381.8 million overall this year.

“Losses have not stopped Semiconductor short sellers from increasing their exposure to the sector,” Dusaniwsky told Benzinga. “Worldwide short interest is now $38.8 billion, up $3.8 billion in just the last month.”

S3 data suggests Intel Corporation (NASDAQ: INTC) remains the most popular short-selling target in the semiconductor space with more than $5.2 billion in short interest.

Be the first to get this news with Benzinga Pro. Sign up for your free two-week trial here.

Related Links:

Why Short Percent Of Float Is Meaningless For Most Popular Stocks

Kylie Jenner Tweet Lands Snap Short Sellers $163 Million Profit

Posted-In: Analyst Color Short Ideas Technicals Options Top Stories Markets Movers Trading Ideas Best of Benzinga


Related Articles (INTC + AMD)

View Comments and Join the Discussion!

Latest Ratings

EMNMorgan StanleyUpgrades90.0
DERMRaymond JamesUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Ahead Of Kroger's Q4 Report, Two Key Questions From Loop Capital Markets

Positioning For A Commodities Rebound With An ETF