Put Buying Jumps as Advanced Micro Devices, Inc. (AMD) Drops

Advanced Micro Devices, Inc. (AMD) was downgraded by UBS earlier

by

Published on Mar 25, 2015 at 2:57 PM
Updated on Apr 20, 2015 at 5:32 PM

Advanced Micro Devices, Inc. (NASDAQ:AMD) is among a number of semiconductor stocks getting demolished today. At last check, the shares have plunged 5.6% to trade at $2.63 -- bringing them into the red on a year-to-date basis. Meanwhile, activity in AMD's options pits is feverish.

Most of the attention centers around puts, with the contracts running at quadruple the average intraday pace. In the lead is the July 2.50 put, where some long positions are seemingly being initiated as speculators bank on the equity breaching $2.50 by July options expiration.

Historically speaking, AMD hasn't closed below the strike since late January. However, with the shares sharply lower, delta on the aforementioned put has moved to negative 0.37 from negative 0.30 at Tuesday's close, signaling increased chances of an in-the-money finish.

Advanced Micro Devices, Inc. (NASDAQ:AMD) faces skepticism outside of the options pits, too. Thirteen of 18 covering analysts rate the shares a "hold" or worse. Today, in fact, UBS downgraded AMD to "sell" from "neutral."


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