Spotlight on Advanced Micro Devices: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish stance on Advanced Micro Devices AMD.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with AMD, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 18 uncommon options trades for Advanced Micro Devices.

This isn't normal.

The overall sentiment of these big-money traders is split between 72% bullish and 27%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $271,968, and 11 are calls, for a total amount of $1,225,896.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $110.0 to $130.0 for Advanced Micro Devices during the past quarter.

Volume & Open Interest Development

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Advanced Micro Devices's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Advanced Micro Devices's substantial trades, within a strike price spectrum from $110.0 to $130.0 over the preceding 30 days.

Advanced Micro Devices Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

About Advanced Micro Devices

Advanced Micro Devices designs a variety of digital semiconductors for markets such as PCs, gaming consoles, data centers, industrial, and automotive applications, among others. AMD's traditional strength was in central processing units, CPUs, and graphics processing units, or GPUs, used in PCs and data centers. Additionally, the firm supplies the chips found in prominent game consoles such as the Sony PlayStation and Microsoft Xbox. In 2022, the firm acquired field-programmable gate array, or FPGA, leader Xilinx to diversify its business and augment its opportunities in key end markets such as the data center and automotive.

Following our analysis of the options activities associated with Advanced Micro Devices, we pivot to a closer look at the company's own performance.

Current Position of Advanced Micro Devices

• With a volume of 6,540,661, the price of AMD is down -1.22% at $121.15.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 63 days.

What The Experts Say On Advanced Micro Devices

In the last month, 5 experts released ratings on this stock with an average target price of $124.2.

• Consistent in their evaluation, an analyst from Morgan Stanley keeps a Overweight rating on Advanced Micro Devices with a target price of $128.
• Maintaining their stance, an analyst from Wedbush continues to hold a Outperform rating for Advanced Micro Devices, targeting a price of $130.
• An analyst from UBS has decided to maintain their Buy rating on Advanced Micro Devices, which currently sits at a price target of $135.
• An analyst from Mizuho persists with their Buy rating on Advanced Micro Devices, maintaining a target price of $130.
• Maintaining their stance, an analyst from Truist Securities continues to hold a Hold rating for Advanced Micro Devices, targeting a price of $98.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Advanced Micro Devices, Benzinga Pro gives you real-time options trades alerts.