Advanced Micro Devices, General Motors Stocks See Heavy Options Trading

Advanced Micro Devices and General Motors have seen some of the heaviest options volume in the past two weeks

Apr 10, 2017 at 2:34 PM
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The 20 stocks listed in the table below have attracted the highest total options volume during the past 10 trading days. Stocks highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. Two names of notable interest are Apple supplier Advanced Micro Devices, Inc. (NASDAQ:AMD) and car stock General Motors Company (NYSE:GM). Here's a quick roundup of how options traders have been placing bets on shares of AMD and GM.

most active stock options april 10

Options Traders Close Bullish Positions as AMD Stock Retreats

AMD options traders have shown a clear preference for calls over puts in the past two weeks, with 688,331 of the former and 355,522 of the latter traded. The stock's April 14 call has seen the most action over the last 10 trading sessions, with 115,250 contracts exchanged.

Given AMD's recent sell-off, it seems like the bulk of this activity has been of the sell-to-close kind, considering there are just 77,853 contracts currently outstanding at this out-of-the-money strike -- though, it's still the stock's top open interest position. In fact, this strike is most active in AMD's options pits today, with more than 11,000 contracts traded, and it looks like some of the action is a result of traders closing out of their long positions ahead of next Friday's expiration.

At last check, AMD stock was trading down 2.2% at $13.23 -- one of the top decliners on the S&P 500 Index (SPX). While the security remains a long-term outperformer -- up 379% year-over-year -- the shares have surrendered more than 6% since their April 5 close, after Goldman Sachs issued a "sell" rating on AMD stock. Off the charts, Advanced Micro Devices, Inc. said it has acquired Nitero, a wireless desktop virtual reality firm.

General Motors Stock Targeted in Bearish Options Trade

In the last 10 trading sessions, GM stock has seen 272,507 call options change hands, compared to 187,034 put options. Today, however, it's put options that are in high demand. By the numbers, 35,148 puts have traded -- two times the average intraday rate -- compared to 11,767 calls. What's more, GM's single-day put/call volume ratio is perched at a top-heavy 2.99, on track to settle at a new annual high.

The bulk of this put volume appears to be a result of a bearish roll down and out in the April and June series -- a theory echoed by Trade-Alert. Specifically, it looks like one options trader sold to close her April 34 puts, and simultaneously bought to open the June 31 puts. In other words, this put buyer expects GM to slide south of $31 by June options expiration.

Looking at the charts, GM stock is trading up 0.8% at $33.99, even after Tesla Inc (NASDAQ:TSLA) unseated General Motors Company as the most valuable U.S. automaker -- less than one week after surpassing Ford Motor Company (NYSE:F). Though the stock has pulled back since hitting an annual high of $38.55 on March 6, it remains 15% higher year-over-year, and could find a foothold atop its rising 200-day moving average -- a trendline that contained a post-election retreat in November.

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