Chip Stock Takes a Breather After Analyst Bear Note

There room for more pessimism to unwind amongst the brokerage bunch

Deputy Editor
Mar 31, 2022 at 9:56 AM
facebook twitter linkedin


Advanced Micro Devices, Inc. (NASDAQ:AMD) is down 2.1% to trade at $116.70 this morning, after a bear note from Barclays. The firm downgraded the semiconductor giant to "equal weight" from "overweight," with a price-target cut to $115 from $148, saying that while the company will continue to gain market share over competitor Intel (INTC) in the next few years, there's multiple end markets long-overdue for correction that will eventually stymie growth.

On the charts, Advanced Micro Devices stock began trending lower, after a Nov. 30 all-time high of $164.46. While today's drop has AMD gapping to its lowest level in a week, the 30-day moving average remains below as potential support for the pullback. Year-over-year, AMD is up 46%.

Short-term options traders are unusually put-biased at the moment. This is per AMD's Schaeffer's put/call open interest ratio (SOIR) of 1.21, which stands higher than all other readings in its 12-month range.

It's also worth noting the equity's Schaeffer's Volatility Scorecard (SVS) stands at a relatively high 83 out of 100. This means the equity has exceeded options traders' volatility expectations during the past year.

 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners