AMD Stock Options Hot Ahead of Analyst Day

Advanced Micro Devices shares are higher today amid heavier-than-usual volume

May 16, 2017 at 11:01 AM
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Options traders are blasting Advanced Micro Devices, Inc. (NASDAQ:AMD) ahead of the chipmaker's annual analyst conference, slated to begin later today. At last check, more than 112,000 calls have traded on AMD stock, four times what's typically seen at this point in the day and with volume on track to settle in the 100th annual percentile. By comparison, around 53,200 puts have changed hands -- also on pace to close at the top of its annual range, and five times the expected intraday pace.

Front-month strikes are popular, accounting for eight of AMD's 10 most active options. The May 12 call has garnered the most attention, with nearly 38,000 contracts traded. It looks as if new positions are being purchased, too, meaning call buyers are betting on AMD stock to settle the week -- when the options expire -- above $12.

Today's activity just echoes the recent trend seen in AMD's options pits, with the May 12 strike seeing the biggest rise in open interest over the past two weeks. In fact, this strike is home to peak front-month open interest, with roughly 69,000 contracts outstanding. Data from the major options exchanges confirms recent buy-to-open activity, too.

This heavy call buying -- which has call open interest docked at a 52-week peak of 1.29 million contracts -- comes as AMD stock recovers from its recent sell-off. After hitting a nine-year high of $15.55 on Feb. 28, the shares pulled back sharply over the next two months, due in part to an early May earnings-induced bear gap. However, Advanced Micro Devices took a sharp bounce from its 180-day moving average. Today, AMD shares are up 6.7% at $12.19 amid heavier-than-usual trading volume.


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