Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

Short-Term Call Buyers Target Advanced Micro Devices, Inc. (AMD)

Advanced Micro Devices, Inc. calls were much more popular than puts on Friday

by 5/19/2014 9:57 AM
Stocks quoted in this article:

Option Brief: Advanced Micro Devices, Inc. (NYSE:AMD) calls traded at nearly seven times the rate of puts on Friday, with short-term bets particularly in vogue. Nevertheless, the semiconductor stock's 30-day at-the-money implied volatility touched its lowest level in a year, and finished the session down 4.8% at 34.2%.

AMD's most active non-expiring strike was the June 4.50 call, where 3,144 contracts -- including a sweep of 2,164 -- crossed the tape. The majority traded off the ask, and open interest spiked by roughly 2,900 contracts over the weekend -- more than any other strike -- making it safe to assume the newly front-month bets were bought to open.

Friday's traders are either "vanilla" bulls expecting AMD to rally past $4.50 by the close on Friday, June 20 (when the contracts expire), or short sellers hedging against short-term upside in the shares. Lending credibility to the latter hypothesis: 18.6% of the equity's float is sold short, and the $4.40-$4.60 neighborhood has acted as a technical ceiling since mid-2012.

Advanced Micro Devices, Inc. (NYSE:AMD) closed at $4.02 last Friday. As such, delta on the calls finished the week at 0.17, representing a less than 1-in-5 chance the option will be in the money at expiration.


permalink

Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.