AMD Hits Record High on Double Dose of Bull Notes

Call traders have flocked to the chip name in recent weeks

Emma Duncan

Managing Editor

Jan 21, 2020 at 10:58 AM

Chip name Advanced Micro Devices, Inc. (NASDAQ:AMD) is up 1.2% and fresh off a record high of $51.81 this morning, surging after receiving two analyst bull notes. Deutsche Bank hiked its price target to $40 from $29, while Northland Capital Markets raised to $42. The catalysts are unclear, but the double dose of optimism has AMD pacing toward a fourth straight win and highest close on record. Year-over-year, the equity has soared 148%, with a healthy leg of support seen at the 20-day moving average.

In the options pits, Advanced Micro Devices stock looks to be a favorite of call traders.This is per the chip name's 10-day call/put volume ratio at the 3.81 International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks four percentage points from an annual high. This morning, the weekly 1/24 50-strike call is seeing the most attention.

Coming into today, analysts were leaning slightly more pessimistic. Specifically, 13 of 22 sport a tepid "hold" recommendation. Meanwhile, shorts have been hitting the exits, with short interest down 10.2% during the past two reporting periods. However, this still accounts for nearly 9% of AMD's available float, and almost two days' worth of pent-up buying power.

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