Dan Nathan Sees Unusual Options Activity In AMD

On CNBC's "Options Action," Dan Nathan spoke about unusually high options activity in Advanced Micro Devices, Inc. AMD. He said call options volume on Thursday was two times the put options volume.

When the stock was trading at $31.54, a trader sold to close 8,000 contracts of the June 30 calls and bought to open 12,000 contracts of the June 32.50 calls for $1.04. The trade breaks even at $33.54 or 5.41 percent above the closing price on Thursday.

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Nathan explained that traders are excited about the stock because the company has recently announced that it has some new desktop and server chips coming out and it has also signed a licensing agreement with Samsung for mobile phones.